Effective Oct. 1, 2020 the NC Reinsurance Facility (NCRF) has updated the recoupment surcharge from 7.07% to 4.56%.
FAQs:
Q: If the recoupment surcharge is 4.56%, why is the actual amount of the surcharge at 5.07%?
A: Because the Facility states agents should receive 10% commission on the recoupment charge and JSA passes 100% of that on to the agents.
Q: Is there a change from last year?
A: Yes, premiums for auto liability coverages will only be increased by a 5.07% surcharge instead of the former 7.86% surcharge.
Q: To which NC policies does this apply?
- Commercial Auto Policies
- Garage Dealer Policies written on admitted paper
Q: What is exempt from the Commercial Auto Loss recoupment?
- Personal Auto Policies
- Physical Damage Premium or Policies
- Cargo Policy Premium or Policies
- Garagekeeper’s Legal Liability Coverage Premium
- Garage Service Risks written on non-admitted paper
Q: Where is this reflected on my policy?
A: The surcharge is included in premium charges shown for bodily injury and property damage. It is not a separate line item.
Q: Where can I read more about this?
A: You can read the NCRF circular letter RF-20-8 HERE on the NCRF website. [Dated June 22nd RF-20-8 Additional Revisions]
