*This article contains outdated information. Click here to read the most recent article published on the New Commercial Auto Loss Recoupment Surcharge.*
Beginning October 1, 2018, the NC Reinsurance Facility (NCRF) will implement a new commercial auto loss recoupment surcharge of 14.61% for all new and renewal commercial auto policies effective on or after October 1, 2018 through September 30, 2019.
Q: Will my pricing go up?
A: Yes. Premiums for auto liability coverages will increase by 16.23%.
Q: If the recoupment surcharge is 14.61%, why are policies increasing by 16.23%?
A: Because the Facility states agents should receive 10% commission on the recoupment charge and JSA will pass on 100% of that.
Q: Does this apply to personal auto policies?
A: No, this recoupment surcharge just applies to commercial auto policies. This surcharge does not apply to other policies such as physical damage or cargo policies.
Q: Where will this charge be reflected on my policy?
A: It will not be a separate written item; instead the surcharge will be included in premium charges shown for bodily injury and property damage.
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