New Commercial Auto Loss Recoupment Surcharge
The NC Reinsurance Facility (NCRF) will implement a new commercial auto loss recoupment surcharge of 14.61% on October 1, 2018 for all new and renewal commercial auto policies effective on or after October 1, 2018 through September 30, 2019. The surcharge will apply to all commercial auto policies whether ceded to the NCRF or retained as voluntary business by the carrier.
The NCRF was established by the Legislature in the early 1970s as a replacement for the Assigned Risk Plan in order to provide auto liability insurance for auto owners who could not get insurance in the voluntary markets. The NCRF is operated on a no loss/no gain basis. Recently, the NCRF has sustained substantial losses from commercial auto operations. To recoup these losses, it is necessary to add a recoupment surcharge to all commercial auto policies written in North Carolina. The recoupment surcharge is reviewed and adjusted on an annual basis.
The Independent Insurance Agents of North Carolina have compiled a list of frequently asked questions and a video seen below to help further detail this surcharge.
If you have any questions or need guidance, please do not hesitate to reach out to your local Marsh & McLennan Agency representative.