The NC Reinsurance Facility (NCRF) reduced the surcharge for all new and renewal commercial auto and garage dealer policies last year. According to a circular letter released by the NCRF, the recoupment that was implemented Oct. 1, 2018, was confirmed to remain the same through September of 2020.
FAQs:
Q: Is there a change from last year?
A: No. Premiums for auto liability coverages will continue to be increased by the 7.86% recoupment surcharge.
Q: If the recoupment surcharge is 7.07%, why are the policies stated at 7.86%?
A: Because the Facility states agents should receive 10% commission on the recoupment charge and JSA passes on 100% of that to the agents.
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-19-6 HERE.
