Bill Text: NC S490 | 2011-2012 | Regular Session | Amended
Bill Title: Automobile Insurance Regulatory Modernization
Spectrum: Partisan Bill (Republican 3-0)
Status: (Introduced - Dead) 2011-04-04 - Ref To Com On Insurance [S490 Detail]
Download: North_Carolina-2011-S490-Amended.html
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2011
S 1
SENATE BILL 490
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Short Title: Automobile Insurance Regulatory Modernization. |
(Public) |
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Sponsors: |
Senators Rucho; Brock and Rouzer. |
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Referred to: |
Insurance. |
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April 4, 2011
A BILL TO BE ENTITLED
AN ACT to modernize the nonfleet private passenger automobile and motorcycle insurance regulatory environment.
The General Assembly of North Carolina enacts:
SECTION 1. Article 36 of Chapter 58 of the General Statutes reads as rewritten:
"Article 36.
"North Carolina Rate Bureau.
"§ 58‑36‑1. North Carolina Rate Bureau created.
There is hereby created a Bureau to be known as the "North Carolina Rate Bureau," with the following objects and functions:
(1) To assume the functions formerly performed by the
North Carolina Fire Insurance Rating Bureau, the North Carolina Automobile
Rate Administrative Office, Bureau and the Compensation Rating and
Inspection Bureau of North Carolina, with regard to the promulgation of rates,
for insurance against loss to residential real property with not more than four
housing units located in this State and any contents thereof and valuable
interest therein and other insurance coverages written in connection with the
sale of such property insurance; except as provided in G.S. 58‑36‑3(a)(6),
for theft of and physical damage to nonfleet private passenger motor vehicles;
for liability insurance for such motor vehicles, automobile medical payments
insurance, uninsured motorists coverage and other insurance coverages written
in connection with the sale of such liability insurance; and for workers'
compensation and employers' liability insurance written in connection therewith
except for insurance excluded from the Bureau's jurisdiction in G.S. 58‑36‑1(3).
(2) The Bureau shall provide reasonable means to be approved by the Commissioner whereby any person affected by a rate or loss costs made by it may be heard in person or by the person's authorized representative before the governing committee or other proper executive of the Bureau.
(3) The Bureau shall promulgate and propose rates for
insurance against loss to residential real property with not more than four
housing units located in this State and any contents thereof or valuable
interest therein and other insurance coverages written in connection with the
sale of such property insurance; for insurance against theft of or physical
damage to nonfleet private passenger motor vehicles; for liability insurance
for such motor vehicles, automobile medical payments insurance, uninsured and
underinsured motorists coverage and other insurance coverages written in
connection with the sale of such liability insurance; and, as provided in G.S. 58‑36‑100,
for loss costs and residual market rate filings for workers' compensation and
employers' liability insurance written in connection therewith. This
subdivision does not apply to motor vehicles operated under certificates of
authority from the Utilities Commission, the Interstate Commerce Commission, or
their successor agencies, where insurance or other proof of financial
responsibility is required by law or by regulations specifically applicable to
such certificated vehicles.
(4) Agreements may be made between or among members with respect to equitable apportionment among them of insurance which may be afforded applicants who are in good faith entitled to but who are unable to procure such insurance through ordinary methods. The members may agree between or among themselves on the use of reasonable rate modifications for such insurance, agreements, and rate modifications to be subject to the approval of the Commissioner.
(5) a. It is the duty of every insurer that writes workers' compensation insurance in this State and is a member of the Bureau, as defined in this section and G.S. 58‑36‑5 to insure and accept any workers' compensation insurance risk that has been certified to be "difficult to place" by any fire and casualty insurance agent who is licensed in this State. When any such risk is called to the attention of the Bureau by receipt of an application with an estimated or deposit premium payment and it appears that the risk is in good faith entitled to such coverage, the Bureau will bind coverage for 30 days and will designate a member who must issue a standard workers' compensation policy of insurance that contains the usual and customary provisions found in those policies. Multiple coordinated policies, as defined by the Bureau and approved by the Commissioner, may be used for the issuance of coverage under this subdivision for risks involved in employee leasing arrangements. Coverage will be bound at 12:01 A.M. on the first day following the postmark time and date on the envelope in which the application is mailed including the estimated annual or deposit premium, or the expiration of existing coverage, whichever is later. If there should be no postmark, coverage will be effective 12:01 A.M. on the date of receipt by the Bureau unless a later date is requested. Those applications hand delivered to the Bureau will be effective as of 12:01 A.M. of the date following receipt by the Bureau unless a later date is requested. The Bureau will make and adopt such rules as are necessary to carry this section into effect, subject to final approval of the Commissioner. As a prerequisite to the transaction of workers' compensation insurance in this State, every member of the Bureau that writes such insurance must file with the Bureau written authority permitting the Bureau to act in its behalf, as provided in this section, and an agreement to accept risks that are assigned to the member by the Bureau, as provided in this section.
b. The Bureau shall maintain a compendium of employers refused voluntary coverage, which shall be made available by the Bureau to all insurers, licensed agents, and self‑insureds' administrators doing business in this State. It shall be stored and indexed to allow access to information by industry, primary classifications of employees, geography, experience modification, and in any other manner the Bureau determines is commercially useful to facilitate voluntary coverage of listed employers. The Bureau shall be immune from civil liability for erroneous information released by the Bureau pursuant to this section, provided that the Bureau acted in good faith and without malicious or willful intent to harm in releasing the erroneous information.
c. Failure or refusal by any assigned employer risk to make full disclosure to the Bureau, servicing carrier, or insurer writing a policy of information regarding the employer's true ownership, change of ownership, operations, or payroll, or any other failure to disclose fully any records pertaining to workers' compensation insurance shall be sufficient grounds for the termination of the policy of that employer.
(6) The Bureau shall maintain and furnish to
the Commissioner on an annual basis the statistics on earnings derived by
member companies from the investment of unearned premium, loss, and loss
expense reserves on nonfleet private passenger motor vehicle insurance policies
written in this State. Whenever the Bureau proposes rates under this Article,
it shall prepare a separate exhibit for the experience years in question
showing the combined earnings realized from the investment of such reserves on
policies written in this State. The amount of earnings may in an equitable
manner be included in the ratemaking formula to arrive at a fair and equitable
rate. The Commissioner may require further information as to such earnings and
may require calculations of the Bureau bearing on such earnings.
(7) Member companies shall furnish, upon
request of any person carrying nonfleet private passenger motor vehicle
insurance in the State upon whose risk a rate has been promulgated, information
as to rating, including the method of calculation.
"§ 58‑36‑2.
Private passenger motor vehicles; number of nonfleet policies.
Notwithstanding the definition of "nonfleet" in G.S. 58‑40‑10(2),
the Bureau shall adopt rules, subject to the Commissioner's approval, that
specify the circumstances under which more than four private passenger motor
vehicles may be covered under a nonfleet private passenger motor vehicle policy
that is subject to this Article.
"§ 58‑36‑3.
Limitation of scope; motorcycle endorsements allowed; Department of
Insurance report.
(a) The Bureau has no jurisdiction over:
(1) Excess workers' compensation insurance for employers qualifying as self‑insurers as provided in Article 47 of this Chapter or Article 5 of Chapter 97 of the General Statutes.
(2) Farm buildings, farm dwellings, and their appurtenant structures; farm personal property or other coverages written in connection with farm real or personal property.
(3) Travel or camper trailers designed to be pulled by
private passenger motor vehicles, unless insured under policies covering nonfleet
private passenger motor vehicles.vehicles.
(4) Mechanical breakdown insurance covering
nonfleet private passenger motor vehicles and other incidental coverages
written in connection with this insurance, including emergency road service
assistance, trip interruption reimbursement, rental car reimbursement, and tire
coverage.
(5) Residential real and personal property insured in multiple line insurance policies covering business activities as the primary insurable interest; and marine, general liability, burglary and theft, glass, and animal collision insurance, except when such coverages are written as an integral part of a multiple line insurance policy for which there is an indivisible premium.
(6) Insurance against theft of or physical
damage to motorcycles, as defined in G.S. 20‑4.01(27)d.
(7) Personal excess liability or personal "umbrella" insurance.
(b) Member companies writing motorcycle
liability insurance under this Article and writing insurance against theft of
or physical damage to motorcycles under Article 40 of this Chapter may
incorporate motorcycle theft and physical damage coverage as an endorsement to
the liability policy issued under this Article.
(c) Beginning on February 1, 2003, and
annually thereafter, the Department of Insurance shall report to the President
Pro Tempore of the Senate and the Speaker of the House of Representatives on
the effectiveness of S.L. 2001‑389 in assuring the provision of insurance
coverage to motorcyclists at fair and economical rates.
…
"§ 58‑36‑5. Membership as a prerequisite for writing insurance; governing committee; rules and regulations; expenses.
(a) Before the Commissioner shall grant permission to
any stock, nonstock, or reciprocal insurance company or any other insurance
organization to write in this State insurance against loss to residential real
property with not more than four housing units located in this State or any
contents thereof or valuable interest therein or other insurance coverages
written in connection with the sale of such property insurance; or insurance
against theft of or physical damage to private passenger (nonfleet) motor
vehicles; or liability insurance for such motor vehicles, automobile medical
payments insurance, uninsured motorists coverage or other insurance coverage written
in connection with the sale of such liability insurance; or workers'
compensation and employers' liability insurance written in connection
therewith; except for insurance excluded from the Bureau's jurisdiction in G.S. 58‑36‑1(3);
it shall be a requisite that they shall subscribe to and become members of the
Bureau.
…
"§ 58‑36‑10. Method of rate making; factors considered.
The following standards shall apply to the making and use of rates:
…
(4) Risks may be grouped by classifications and lines
of insurance for establishment of rates, loss costs, and base premiums.
Classification rates may be modified to produce rates for individual risks in
accordance with rating plans that establish standards for measuring variations
in hazards or expense provisions or both. Those standards may measure any
differences among risks that can be demonstrated to have a probable effect upon
losses or expenses. The Bureau shall establish and implement a comprehensive
classification rating plan for motor vehicle insurance under its jurisdiction.
No such classification plans shall base any standard or rating plan for private
passenger (nonfleet) motor vehicles, in whole or in part, directly or
indirectly, upon the age or gender of the persons insured. The Bureau shall
at least once every three years make a complete review of the filed
classification rates to determine whether they are proper and supported by
statistical evidence, and shall at least once every 10 years make a complete
review of the territories for nonfleet private passenger motor vehicle
insurance to determine whether they are proper and reasonable.evidence.
(5) In the case of workers' compensation insurance and employers' liability insurance written in connection therewith, due consideration shall be given to the past and prospective effects of changes in compensation benefits and in legal and medical fees that are provided for in General Statutes Chapter 97.
(6) To ensure that policyholders in the beach and coastal areas of the North Carolina Insurance Underwriting Association whose risks are of the same class and essentially the same hazard are charged premiums that are commensurate with the risk of loss and premiums that are actuarially correct, the North Carolina Rate Bureau shall revise, monitor, and review the existing territorial boundaries used by the Bureau when appropriate to establish geographic territories in the beach and coastal areas of the Association for rating purposes. In revising these territories, the Bureau shall use statistical data sources available to define such territories to represent relative risk factors that are actuarially sound and not unfairly discriminatory. The new territories and any subsequent amendments proposed by the North Carolina Rate Bureau or Association shall be subject to the Commissioner's approval and shall appear on the Bureau's Web site, the Association's Web site, and the Department's Web site once approved.
"§ 58‑36‑15. Filing loss costs, rates, plans with Commissioner; public inspection of filings.
(a) The Bureau shall file with the Commissioner copies of the rates, loss costs, classification plans, rating plans and rating systems used by its members. Each rate or loss costs filing shall become effective on the date specified in the filing, but not earlier than 210 days from the date the filing is received by the Commissioner: Provided that (1) rate or loss costs filings for workers' compensation insurance and employers' liability insurance written in connection therewith shall not become effective earlier than 210 days from the date the filing is received by the Commissioner or on the date as provided in G.S. 58‑36‑100, whichever is earlier; and (2) any filing may become effective on a date earlier than that specified in this subsection upon agreement between the Commissioner and the Bureau.
(b) A filing shall be open to public inspection immediately upon submission to the Commissioner.
(c) The Bureau shall maintain reasonable records, of the type and kind reasonably adapted to its method of operation, of the experience of its members and of the data, statistics or information collected or used by it in connection with the rates, rating plans, rating systems, loss costs and other data as specified in G.S. 58‑36‑100, underwriting rules, policy or bond forms, surveys or inspections made or used by it.
(d) With respect to the filing of rates for
nonfleet private passenger motor vehicle insurance, the Bureau shall, on or
before February 1 of each year, or later with the approval of the Commissioner,
file with the Commissioner the experience, data, statistics, and information
referred to in subsection (c) of this section and any proposed adjustments in
the rates for all member companies of the Bureau. The filing shall include,
where deemed by the Commissioner to be necessary for proper review, the data
specified in subsections (c), (e), (g) and (h) of this section. Any filing that
does not contain the data required by this subsection may be returned to the
Bureau and not be deemed a proper filing. Provided, however, that if the
Commissioner concludes that a filing does not constitute a proper filing he
shall promptly notify the Bureau in writing to that effect, which notification
shall state in reasonable detail the basis of the Commissioner's conclusion.
The Bureau shall then have a reasonable time to remedy the defects so
specified. An otherwise defective filing thus remedied shall be deemed to be a
proper and timely filing, except that all periods of time specified in this
Article will run from the date the Commissioner receives additional or amended
documents necessary to remedy all material defects in the original filing.
…
"§ 58‑36‑30. Deviations.
(a) Except as permitted by G.S. 58‑36‑100 for workers' compensation loss costs filings, no insurer and no officer, agent, or representative of an insurer shall knowingly issue or deliver or knowingly permit the issuance or delivery of any policy of insurance in this State that does not conform to the rates, rating plans, classifications, schedules, rules and standards made and filed by the Bureau. An insurer may deviate from the rates promulgated by the Bureau if the insurer has filed the proposed deviation with the Bureau and the Commissioner, if the proposed deviation is based on sound actuarial principles, and if the proposed deviation is approved by the Commissioner. Amendments to deviations are subject to the same requirements as initial filings. An insurer may terminate a deviation only if the deviation has been in effect for a period of six months before the effective date of the termination and the insurer notifies the Commissioner of the termination no later than 15 days before the effective date of the termination.
(b) A rate in excess of that promulgated by the Bureau
may be charged by an insurer on any specific risk if the higher rate is charged
in accordance with rules adopted by the Commissioner and with the knowledge and
written consent of the insured. The insurer is not required to obtain the
written consent of the insured on any renewal of or endorsement to the policy
if the policy renewal or endorsement states that the rates are greater than
those rates that are applicable in the State of North Carolina. The insurer
shall retain the signed consent form and other policy information for each
insured and make this information available to the Commissioner, upon request
of the Commissioner. This subsection may be used to provide motor vehicle
liability coverage limits above those required under Article 9A of Chapter 20
of the General Statutes and above those cedable to the Facility under Article
37 of this Chapter to persons whose personal excess liability insurance
policies require that they maintain specific higher liability coverage limits. Any
data obtained by the Commissioner under this subsection is proprietary and
confidential and is not a public record under G.S. 132‑1 or G.S. 58‑2‑100.
(c) Any approved rate under subsection (b) of this section with respect to workers' compensation and employers' liability insurance written in connection therewith shall be furnished to the Bureau.
(d) Notwithstanding any other provision of
law prohibiting insurance rate differentials based on age, with respect to
nonfleet private passenger motor vehicle insurance under the jurisdiction of
the Bureau, any member of the Bureau may apply for and use in this State,
subject to the Commissioner's approval, a downward deviation in the rates for
insureds who are 55 years of age or older. A member of the Bureau may condition
a deviation under this subsection or a deviation under subsection (a) of this
section on the successful completion of a motor vehicle accident prevention
course that has been approved by the Commissioner of Motor Vehicles, as
designated in the deviation.
…
"§ 58‑36‑90.
Prohibitions on using credit scoring to rate noncommercial private passenger
motor vehicle and residential property insurance; exceptions.
(a) Definitions. – As used in this section:
(1) "Adverse action" has the same meaning as
in section 1681a(k) of the federal Fair Credit Reporting Act section
603(k) of the federal Fair Credit Reporting Act, § 15 U.S.C. § 1681a(k), and
includes a denial or cancellation of, an increase in any charge for, or a
reduction or other adverse or unfavorable change in the terms of coverage or
amount of any insurance, existing or applied for, in connection with the
underwriting of insurance.
(2) "Credit report" means any written, oral, or other communication of any information by a consumer reporting agency that bears on a consumer's credit worthiness, credit standing, or credit capacity. Credit report does not include accident or traffic violation records as maintained by the North Carolina Division of Motor Vehicles or any other law enforcement agency, a property loss report or claims history that does not include information that bears on a consumer's credit worthiness, credit standing, or credit capacity, or any report containing information solely as to transactions or experiences between the consumer and the person making the report.
(3) "Credit score" means a score that is derived by utilizing data from an individual's credit report in an algorithm, computer program, model, or other process that reduces the data to a number or rating.
(4) "Noncommercial private passenger
motor vehicle" means a "private passenger motor vehicle," as
defined by G.S. 58‑40‑10, that is neither insured under a
commercial policy nor used for commercial purposes.
(5) "Private passenger motor vehicle"
has the same meaning as set forth in G.S. 58‑40‑10.
(6) "Residential property" means real property with not more than four housing units located in this State, the contents thereof and valuable interest therein, and insurance coverage written in connection with the sale of that property. It also includes mobile homes, modular homes, townhomes, condominiums, and insurance on contents of apartments and rental property used for residential purposes.
(b) Prohibitions; Exceptions. – In the rating and
underwriting of noncommercial private passenger motor vehicle and residential
property insurance coverage, insurers shall not use credit scoring as the sole
basis for terminating an existing policy or any coverage in an existing policy
or subjecting a policy to consent to rate as specified in G.S. 58‑36‑30(b)
without consideration of any other risk factors, but insurers may use credit
scoring as the sole basis for discounting rates. For purposes of this
subsection only, "existing policy" means a policy that has been in
effect for more than 60 days.
…."
SECTION 2. G.S. 58‑36‑41, G.S. 58‑36‑65 through 58‑36‑85, and G.S. 58‑36‑95 are repealed.
SECTION 3. Article 40 of Chapter 58 of the General Statutes reads as rewritten:
"Article 40.
"Regulation of Insurance Rates.
…
"§ 58‑40‑10. Other definitions.
As used in this Article and in Articles 36 and 3736,
37, 37A, and 41 of this Chapter:
(1) "Private passenger motor vehicle" means:
a. A motor vehicle of the private passenger or station wagon type that is owned or hired under a long‑term contract by the policy named insured and that is neither used as a public or livery conveyance for passengers nor rented to others without a driver; or
b. A motor vehicle that is a pickup truck or van that is owned by an individual or by husband and wife or individuals who are residents of the same household if it:
1. Has a gross vehicle weight as specified by the manufacturer of less than 10,000 pounds; and
2. Is not used for the delivery or transportation of goods or materials unless such use is (i) incidental to the insured's business of installing, maintaining, or repairing furnishings or equipment, or (ii) for farming or ranching.
Such vehicles owned by a family farm copartnership or a family farm corporation shall be considered owned by an individual for the purposes of this section; or
c. A motorcycle, motorized scooter or other similar
motorized vehicle not used for commercial purposes.as defined in G.S. 20‑4.01(27)d.
(2) "Nonfleet" motor vehicle means a motor vehicle not eligible for classification as a fleet vehicle for the reason that the motor vehicle is one of four or fewer motor vehicles hired under a long‑term contract or owned by the insured named in the policy.
"§ 58‑40‑15. Scope of application.
The provisions of this Article shall apply to all insurance on risks or on operations in this State, except:
(1) Reinsurance, other than joint reinsurance to the extent stated in G.S. 58‑40‑60;
(2) Any policy of insurance against loss or damage to or legal liability in connection with property located outside this State, or any motor vehicle or aircraft principally garaged and used outside of this State, or any activity wholly carried on outside this State;
(3) Insurance of vessels or craft, their cargoes, marine builders' risks, marine protection and indemnity, or other risks commonly insured under marine, as distinguished from inland marine, insurance policies;
(4) Accident, health, or life insurance;
(5) Annuities;
(6) Repealed by Session Laws 1985, c. 666, s. 43;
(7) Mortgage guaranty insurance;
(8) Workers' compensation and employers' liability insurance written in connection therewith;
(9) For private passenger (nonfleet) motor
vehicle liability insurance, automobile medical payments insurance, uninsured
motorists' coverage and other insurance coverages written in connection with
the sale of such liability insurance;
(10) Theft of or physical damage to nonfleet
private passenger motor vehicles; except this Article applies to insurance
against theft of or physical damage to motorcycles, as defined in G.S. 20‑4.01(27)d.;
and
(11) Insurance against loss to residential real property
with not more than four housing units located in this State or any contents
thereof or valuable interest therein and other insurance coverages written in
connection with the sale of such property insurance. Provided, however, that
this Article shall apply to insurance against loss to farm dwellings, farm
buildings and their appurtenant structures, farm personal property and other
coverages written in connection with farm real or personal property; travel or
camper trailers designed to be pulled by private passenger motor vehicles
unless insured under policies covering nonfleet private passenger motor
vehicles; vehicles; residential real and personal property insured
in multiple line insurance policies covering business activities as the primary
insurable interest; and marine, general liability, burglary and theft, glass,
and animal collision insurance except when such coverages are written as an
integral part of a multiple line insurance policy for which there is an
indivisible premium.
The provisions of this Article shall not apply to hospital service or medical service corporations, investment companies, mutual benefit associations, or fraternal beneficiary associations.
"§ 58‑40‑17. Private passenger motor vehicles; number of nonfleet policies.
Notwithstanding the definition of "nonfleet" in G.S. 58‑40‑10(2), an insurer may adopt rules, subject to the Commissioner's approval, that specify the circumstances under which more than four private passenger motor vehicles may be covered under a nonfleet private passenger motor vehicle policy that is subject to this Article.
…
"§ 58‑40‑30. Filing of rates and supporting data.
(a) With the exception of inland marine insurance that
is not written according to manual rates and rating plans, plans and
rate filings subject to Article 37A of this Chapter, every admitted insurer
and every licensed statistical organization, which has been designated by any
insurer for the filing of rates under G.S. 58‑40‑40, shall
file with the Commissioner all rates and all changes and amendments thereto to
rates made by it for use in this State prior to the time they become
effective.
(b) The Commissioner may require the filing of supporting data including:
(1) The experience and judgment of the filer, and to the extent the filer wishes or the Commissioner requires, of other insurers or rating organizations;
(2) The filer's interpretation of any statistical data relied upon; and
(3) Descriptions of the methods employed in setting the rates.
(c) Upon written consent of the insured stating the insured's reasons, a rate or deductible or both in excess of that provided by an otherwise applicable filing may be used on a specific risk, in accordance with rules adopted by the Commissioner. The insurer is not required to obtain the written consent of the insured on any renewal of or endorsement to the policy if the policy renewal or endorsement states that the rates or deductible, or both, are greater than those rates or deductibles, or both, that are applicable in the State of North Carolina. The insurer shall retain the signed consent form and other policy information for each insured and make this information available to the Commissioner, upon request of the Commissioner.
(d) This section and G.S. 58‑41‑50 shall be construed in pari materia.
…
"§ 58‑40‑145. Prohibitions on using credit scoring to rate nonfleet private passenger motor vehicle insurance; exceptions.
(a) Definitions. – The following definitions apply in this section:
(1) Adverse action. – As defined in section 603(k) of the federal Fair Credit Reporting Act, 15 U.S.C. § 1681a(k), a denial or cancellation of, an increase in any charge for, or a reduction or other adverse or unfavorable change in the terms of coverage or amount of any insurance, existing or applied for, in connection with the underwriting of insurance.
(2) Credit report. – Any written, oral, or other communication of any information by a consumer reporting agency that bears on a consumer's creditworthiness, credit standing, or credit capacity. Credit report does not include accident or traffic violation records as maintained by the North Carolina Division of Motor Vehicles or any other law enforcement agency, a property loss report or claims history that does not include information that bears on a consumer's creditworthiness, credit standing, or credit capacity, or any report containing information solely as to transactions or experiences between the consumer and the person making the report.
(3) Credit score. – A score that is derived by utilizing data from an individual's credit report in an algorithm, computer program, model, or other process that reduces the data to a number or rating.
(b) Prohibitions; Exceptions. – In the rating and underwriting of noncommercial private passenger motor vehicle coverage, insurers shall not use credit scoring as the sole basis for terminating an existing policy or any coverage in an existing policy or subjecting a policy to consent to rate as specified in G.S. 58‑40‑30(c) without consideration of any other risk factors, but insurers may use credit scoring as the sole basis for discounting rates. For purposes of this subsection only, "existing policy" means a policy that has been in effect for more than 60 days.
(c) Notification. – If a credit report is used in conjunction with other criteria to take an adverse action, the insurer shall provide the applicant or policyholder with written notice of the action taken, in a form approved by the Commissioner. The notification shall include, in easily understandable language:
(1) The specific reason for the adverse action and, if the adverse action was based upon a credit score, a description of the factors that were the primary influence on the score.
(2) The name, address, and toll‑free telephone number of the credit bureau that provided the insurer with the credit‑based information.
(3) The fact that the consumer has the right to obtain a free copy of the consumer's credit report from the appropriate credit bureau.
(4) The fact that the consumer has the right to challenge information contained in the consumer's credit report.
(d) Disputed Credit Report Information. – If it is determined through the dispute resolution process set forth in section 611(a) of the federal Fair Credit Reporting Act, 15 U.S.C. § 1681i(a), that the credit information of a current insured was incorrect or incomplete and if the insurer receives notice of such determination from either the consumer reporting agency or from the insured, the insurer shall re‑underwrite or re‑rate the consumer within 30 days of receiving the notice. After re‑underwriting or re‑rating the insured, the insurer shall make any adjustments necessary, consistent with its underwriting guidelines. If an insurer determines the insured has overpaid premium, the insurer shall refund to the insured the amount of overpayment calculated back to the shorter of either the last 12 months of coverage or the actual policy period.
(e) Indemnification. – An insurer shall indemnify, defend, and hold agents harmless from and against all liability, fees, and costs arising out of or relating to the actions, errors, or omissions of an agent who obtains or uses credit information or credit scores for an insurer, provided the agent follows the instructions or procedures established by the insurer and complies with any applicable law or regulation. Nothing in this subsection shall be construed to provide a consumer or other insured with a cause of action that does not exist in the absence of this subsection.
(f) Filing. – Insurers that use credit scores to underwrite and rate risks shall file their scoring models, or other scoring processes, with the Department. A filing that includes credit scoring may include loss experience justifying the applicable surcharge or credit. A filer may request that its credit score data be considered a trade secret and may designate parts of its filings accordingly.
"§ 58‑40‑150. Use of nonoriginal crash repair parts.
(a) The following definitions apply in this section:
(1) Crash repair part. – Sheet metal or plastic parts that are intended for use as replacements for components of the exterior of a motor vehicle.
(2) Insurer. – Any insurance company licensed by the Commissioner to write nonfleet private passenger motor vehicle insurance policies, as well as any person authorized to represent an insurer with respect to a claim.
(3) Nonoriginal. – When used to describe a crash repair part, windshield, auto glass, or other component of a motor vehicle, "nonoriginal" means the component was not manufactured by or for the original equipment manufacturer of the vehicle.
(b) An insurer shall disclose to a claimant in writing, either on the estimate or on a separate document attached to the estimate, the following in no smaller than 10 point type: "THIS ESTIMATE HAS BEEN PREPARED BASED ON THE USE OF AUTOMOBILE PARTS NOT MADE BY THE ORIGINAL MANUFACTURER. PARTS USED IN THE REPAIR OF YOUR VEHICLE MADE BY OTHER THAN THE ORIGINAL MANUFACTURER ARE REQUIRED TO BE AT LEAST EQUIVALENT IN TERMS OF FIT, QUALITY, PERFORMANCE, AND WARRANTY TO THE ORIGINAL MANUFACTURER PARTS THEY ARE REPLACING."
(c) It is a violation of G.S. 58‑3‑180 for an automobile repair facility or parts person to place a nonoriginal crash repair part, nonoriginal windshield, or nonoriginal auto glass on a motor vehicle and to submit an invoice for an original repair part.
(d) Any insurer or other person who has reason to believe that fraud has occurred under this section shall report that fraud to the Commissioner for further action pursuant to G.S. 58‑2‑160.
"§ 58‑40‑155. Material misrepresentation on application for motor vehicle insurance policy.
If an applicant for the issuance or renewal of a nonfleet private passenger motor vehicle insurance policy knowingly makes a material misrepresentation of the years of driving experience or the driving record of any named insured or of any other operator who resides in the same household and who customarily operates a motor vehicle to be insured under the policy, the insurer may take any of the following actions:
(1) Cancel or refuse to renew the policy.
(2) Surcharge the policy.
(3) Recover from the applicant the appropriate amount of premium or surcharge that would have been collected by the insurer had the applicant furnished the correct information."
SECTION 4. G.S. 58‑41‑50 reads as rewritten:
"§ 58‑41‑50. Policy form and rate filings; punitive damages; data required to support filings.
(a) With the exception of inland marine insurance that is not written according to manual rates and rating plans, all policy forms must be filed with and either approved by the Commissioner or 90 days have elapsed and he has not disapproved the form before they may be used in this State. With respect to liability insurance policy forms, an insurer may exclude or limit coverage for punitive damages awarded against its insured.
(b) With the exception of inland marine insurance that
is not written according to manual rates and rating plans,plans and
rate filings subject to Article 37A of this Chapter, all rates or
prospective loss cost multipliers by licensed fire and casualty companies or
their designated statistical organizations must be filed with the Commissioner
at least 60 days before they may be used in this State. Any fire and
casualty filing may become effective on a date earlier than that specified
in this subsection upon agreement between the Commissioner and the filer.
(c) A With the exception of nonfleet private
passenger motor vehicle insurance filings, a filing that does not include
the statistical and rating information required by subsections (d) and (e) of
this section is not a proper filing, and will be returned to the filing insurer
or organization. The filer may then remedy the defects in the filing. An
otherwise defective filing thus remedied shall be deemed to be a proper filing,
except that all periods of time specified in this Article will run from the
date the Commissioner receives additional or amended documents necessary to
remedy all material defects in the filing.
(d) The following information must be included in each policy form, rule, and rate filing:
(1) A detailed list of the rates, rules, and policy forms filed, accompanied by a list of those superseded; and
(2) A detailed description, properly referenced, of all changes in policy forms, rules, and rates, including the effect of each change.
(e) Each policy form, rule, and rate filing that is based on statistical data must be accompanied by the following properly identified information:
(1) North Carolina earned premiums at the actual and current rate level; losses and loss adjustment expenses, each on paid and incurred bases without trending or other modification for the experience period, including the loss ratio anticipated at the time the rates were promulgated for the experience period;
(2) Credibility factor development and application;
(3) Loss development factor derivation and application on both paid and incurred bases and in both numbers and dollars of claims;
(4) Trending factor development and application;
(5) Changes in premium base resulting from rating exposure trends;
(6) Limiting factor development and application;
(7) Overhead expense development and application of commission and brokerage, other acquisition expenses, general expenses, taxes, licenses, and fees;
(8) Percent rate change;
(9) Final proposed rates;
(10) Investment earnings, consisting of investment income and realized plus unrealized capital gains, from loss, loss expense, and unearned premium reserves;
(11) Identification of applicable statistical plans and programs and a certification of compliance with them;
(12) Investment earnings on capital and surplus;
(13) Level of capital and surplus needed to support premium writings without endangering the solvency of the company or companies involved; and
(14) Such other information that may be required by any rule adopted by the Commissioner.
Provided, however, that no filing may be returned or disapproved on the grounds that such information has not been furnished if the filer has not been required to collect such information pursuant to statistical plans or programs or to report such information to statistical agents, except where the Commissioner has given reasonable prior notice to the filer to begin collecting and reporting such information or except when the information is readily available to the filer.
(f) It is unlawful for an insurer to charge or collect, or attempt to charge or collect, any premium for insurance except in accordance with filings made with the Commissioner under this section and Article 40 of this Chapter.
(g) An insurer subject to this Article may develop and use an individual form or rate as a result of the uniqueness of a particular risk. The form or rate shall be developed, filed, and used in accordance with rules adopted by the Commissioner.
(h) For purposes of this Article, "nonfleet" and "private passenger motor vehicle" shall be defined as set forth in G.S. 58‑40‑10. "
SECTION 5. Chapter 58 of the General Statutes is amended by adding a new Article to read:
"Article 37A.
"Motor Vehicle Insurance Flex‑Rating.
"§ 58‑37A‑1. Scope.
The provisions of this Article shall apply only to nonfleet private passenger motor vehicle insurance written in this State by any insurer licensed by the Commissioner to write nonfleet private passenger motor vehicle insurance.
"§ 58‑37A‑5. Definitions.
The following definitions apply in this Article:
(1) Inadequate. – With respect to a rate filed under this Article, unreasonably low for the insurance coverage provided and, with continued use, likely to result in any of the following:
a. Endanger the solvency of insurers using the rate.
b. Substantially lessen competition among insurers.
c. Creation of a monopoly in the market for nonfleet private passenger motor vehicle insurance in the State.
(2) Nonfleet. – Defined in G.S. 58‑40‑10.
(3) Nonfleet private passenger motor vehicle insurance. – Coverage for theft of and physical damage to nonfleet private passenger motor vehicles, for liability insurance for such motor vehicles, and for automobile medical payments insurance, uninsured motorists coverage, and other insurance coverages written in connection with the sale of such liability insurance.
(4) Private passenger motor vehicle. – Defined in G.S. 58‑40‑10.
(5) Unfairly discriminatory. – With respect to a rate filed under this Article, congruent with the standard in G.S. 58‑40‑20.
"§ 58‑37A‑10. Flex‑Rating.
(a) Notwithstanding any other provision of this Chapter, a nonfleet private passenger motor vehicle insurance rate filing made by an insurer that provides for an overall statewide rate increase or decrease of no more than fifteen percent (15%), when aggregated for all policyholders and all coverages subject to the filing, may take effect on or after the date it is filed. The filing and effective dates of the rate increase or decrease shall be decided by the insurer and set forth in the rate filing. No more than one rate filing may be made by an insurer pursuant to the expedited process provided by this section during any 12‑month period, unless a rate filing, when combined with any other rate filings made by that insurer within the 12‑month period, does not result in an overall statewide rate increase or decrease of no more than fifteen percent (15%) when aggregated for all policyholders and all coverages subject to the filing.
(b) Rate filings that provide for an overall statewide rate increase or decrease greater than fifteen percent (15%), when aggregated for all policyholders and all coverages subject to the filing, shall be subject to Articles 40 and 41 of this Chapter.
(c) Notwithstanding any other provision of this Chapter, a filing subject to subsection (a) of this section submitted to the Commissioner shall be deemed to comply with G.S. 58‑40‑20 and approved by the Commissioner upon filing. If the Commissioner subsequently determines that the filing is inadequate or unfairly discriminatory, the Commissioner shall issue a written order specifying in detail the basis for the determination that the filing is inadequate or unfairly discriminatory, and setting forth a reasonable future date on which the filing shall be considered no longer effective. An order by the Commissioner pursuant to this subsection shall apply prospectively only, and shall not affect any contract of insurance issued or made before the effective date of the order."
SECTION 6.(a) G.S. 58‑37‑35 reads as rewritten:
"§ 58‑37‑35. The Facility; functions; administration.
…
(l) The classifications, rules, rates, rating plans
and policy forms used on motor vehicle insurance policies reinsured by the
Facility may be made by the Facility or by any licensed or statutory
statistical organization or bureau on its behalf and shall be filed with the
Commissioner. The Board of Governors shall establish a separate
subclassification within the Facility for "clean risks". For the
purpose of this Article, a "clean risk" is any owner of a nonfleet
private passenger motor vehicle as defined in G.S. 58‑40‑10,
if the owner, principal operator, and each licensed operator in the owner's
household have two years' driving experience as licensed drivers and if none of
the persons has been assigned any Safe Driver Incentive Plan points under Article
36 of this Chapter G.S. 58‑37‑80 during the three‑year
period immediately preceding either (i) the date of application for a motor
vehicle insurance policy or (ii) the date of preparation of a renewal of a
motor vehicle insurance policy. The filings may incorporate by reference any
other material on file with the Commissioner. Rates shall be neither excessive,
inadequate nor unfairly discriminatory. If the Commissioner finds, after a hearing,
that a rate is either excessive, inadequate or unfairly discriminatory, the
Commissioner shall issue an order specifying in what respect it is deficient
and stating when, within a reasonable period thereafter, the rate is no longer
effective. The order is subject to judicial review as set out in Article 2 of
this Chapter. Pending judicial review of said order, the filed classification
plan and the filed rates may be used, charged and collected in the same manner
as set out in G.S. 58‑40‑45 of this Chapter. The order shall
not affect any contract or policy made or issued before the expiration of the
period set forth in the order. All rates shall be on an actuarially sound basis
and shall be calculated, insofar as is possible, to produce neither a profit nor
a loss. However, the rates made by or on behalf of the Facility with respect
to "clean risks" shall not exceed the rates charged "clean risks"
who are not reinsured in the Facility. However, the rates for "clean
risks" reinsured in the Facility on policies becoming effective on or
after October 1, 2012, shall provide for an incremental elimination over the
four year period from October 1, 2012, to October 1, 2016, of the difference
between the rate in effect on September 30, 2012, for "clean risks"
reinsured in the Facility and actuarially sound rates for all risks reinsured
in the Facility. The difference between the actual rate charged and the
actuarially sound and self‑supporting rates for "clean risks"
reinsured in the Facility may be recouped in similar manner as assessments
under G.S. 58‑37‑40(f). Rates shall not include any factor for
underwriting profit on Facility business, but shall provide an allowance for
contingencies. There shall be a strong presumption that the rates and premiums
for the business of the Facility are neither unreasonable nor excessive.
(m) In addition to annual premiums, the rules of the Facility shall allow semiannual and quarterly premium terms."
SECTION 6.(b) G.S. 58‑37‑40 reads as rewritten:
"§ 58‑37‑40. Plan of operation.
…
(f) The plan of operation shall provide that every
member shall, following payment of any pro rata assessment, begin recoupment of
that assessment by way of a surcharge on motor vehicle insurance policies
issued by the member or through the Facility until the assessment has been
recouped. Any surcharge under this subsection or under subsection (e) of this
section shall be a percentage of premium adopted by the Board of Governors of
the Facility; and the charges determined on the basis of the surcharge shall be
combined with and displayed as a part of the applicable premium charges. set
out as a separate charge on any statement of applicable premium charges
provided to the policyholder. Recoupment of losses sustained by the
Facility since September 1, 1977, with respect to nonfleet private passenger
motor vehicles may be made only by surcharging nonfleet private passenger motor
vehicle insurance policies. If the amount collected during the period of
surcharge exceeds assessments paid by the member to the Facility, the member
shall pay over the excess to the Facility on a date specified by the Board of
Governors. If the amount collected during the period of surcharge is less than
the assessments paid by the member to the Facility, the Facility shall pay the difference
to the member. Except as otherwise provided in this Article, the amount of
recoupment shall not be considered or treated as a rate or premium for any
purpose. The Board of Governors shall adopt and implement a plan for
compensation of agents of Facility members when recoupment surcharges are
imposed; that compensation shall not exceed the compensation or commission rate
normally paid to the agent for the issuance or renewal of the automobile
liability policy issued through the North Carolina Reinsurance Facility
affected by the surcharge. However, the surcharge shall include an amount
necessary to recover the amount of the assessment to member companies and the
compensation paid by each member, under this section, to agents.
(g) The plan of operation shall provide that all investment income from the premium on business reinsured by the Facility shall be retained by or paid over to the Facility. In determining the cost of operation of the Facility, all investment income shall be taken into consideration.
(h) The plan of operation shall provide for audit of the annual statement of the Facility by independent auditor approved by the Legislative Services Commission.
(i) The Facility shall file with the Commissioner revisions in the Facility plan of operation for his approval or modification. Such revisions shall be made for the purpose of revising the classification and rating plans for other than nonfleet private passenger motor vehicle insurance ceded to the Facility."
SECTION 6.(c) Article 37 of Chapter 58 of the General Statutes is amended by adding two new sections to read:
"§ 58‑37‑80. Classifications and Safe Driver Incentive Plan.
(a) The Facility shall file, subject to review, modification, and promulgation by the Commissioner, such rate classifications, schedules, or rules that the Commissioner deems to be desirable and equitable to classify drivers of nonfleet private passenger motor vehicles for purposes of reinsurance under this Article. Subsequently, the Commissioner may require the Facility to file modifications of the classifications, schedules, or rules. If the Facility does not file the modifications within a reasonable time, the Commissioner may promulgate the modifications. In promulgating or modifying these classifications, schedules, or rules, the Commissioner may give consideration to the following:
(1) Uses of vehicles, including without limitation to farm use, pleasure use, driving to and from work, and business use;
(2) Principal and occasional operation of vehicles;
(3) Years of driving experience of insureds as licensed drivers;
(4) The characteristics of vehicles; or
(5) Any other factors, not in conflict with any law, deemed by the Commissioner to be appropriate.
(b) The Facility shall file, subject to review, modification, and promulgation by the Commissioner, a Safe Driver Incentive Plan ("Plan") that adequately and factually distinguishes among various classes of drivers assigned to the Facility that have safe driving records and various classes of drivers that have a record of at‑fault accidents; a record of convictions of major moving traffic violations; a record of convictions of minor moving traffic violations; or a combination thereof; and that provides for premium differentials among those classes of drivers. Subsequently, the Commissioner may require the Facility to file modifications of the Plan. If the Facility does not file the modifications within a reasonable time, the Commissioner may promulgate the modifications. The Commissioner is authorized to structure the Plan to provide for surcharges above and discounts below the rate otherwise charged.
(c) The classifications and Plan filed by the Facility shall be subject to the filing, hearing, modification, approval, disapproval, review, and appeal procedures provided by law.
(d) Whenever any policy ceded to the Facility is surcharged due to an accumulation of points under the Plan, the insurer shall, pursuant to rules adopted by the Commissioner, prior to or simultaneously with the billing for additional premium, inform the named insured of the surcharge or loss of discount by mailing to such insured a notice that states the basis for the surcharge or loss of discount, and that advises that upon receipt of a written request from the named insured it will promptly mail to the named insured a statement of the amount of increased premium attributable to the surcharge or loss of discount. The statement of the basis of the surcharge or loss of discount is privileged, and does not constitute grounds for any cause of action for defamation or invasion of privacy against the insurer or its representatives, or against any person who furnishes to the insurer the information upon which the insurer's reasons are based, unless the statement or furnishing of information is made with malice or in bad faith.
(e) Records of convictions for moving traffic violations to be considered under this section shall be obtained at least annually from the Division of Motor Vehicles and applied by the Facility's member companies in accordance with rules to be established by the Facility.
(f) The Facility is authorized to establish reasonable rules providing for the exchange of information among its member companies as to chargeable accidents and similar information involving persons to be insured under policies. Neither the Facility, any employee of the Facility, nor any company or individual serving on any committee of the Facility has any liability for defamation or invasion of privacy to any person arising out of the adoption, implementation, or enforcement of any such rule. No insurer or individual requesting, furnishing, or otherwise using any information that such insurer or person reasonably believes to be for purposes authorized by this section has any liability for defamation or invasion of privacy to any person on account of any such requesting, furnishing, or use. The immunity provided by this subsection does not apply to any acts made with malice or in bad faith.
(g) As used in this section, "conviction" means a conviction as defined in G.S. 20‑279.1 and means an infraction as defined in G.S. 14‑3.1.
(h) If an insured disputes his insurer's determination that the operator of an insured vehicle was at fault in an accident, such dispute shall be resolved following a procedure developed by the Facility, unless there has been an adjudication or admission of negligence of such operator.
(i) Subclassification plan surcharges shall be applied to a policy for a period of not less nor more than three policy years.
(j) The subclassification plan may provide for premium surcharges for insureds having less than three years' driving experience as licensed drivers.
"§ 58‑37‑85. At‑fault accidents and certain moving traffic violations under the Safe Driver Incentive Plan.
(a) The subclassification plan promulgated pursuant to G.S. 58‑37‑80(b) may provide for separate surcharges for major, intermediate, and minor accidents. A "major accident" is an at‑fault accident that results in either (i) bodily injury or death or (ii) only property damage of three thousand dollars ($3,000) or more. An "intermediate accident" is an at‑fault accident that results in only property damage of more than one thousand eight hundred dollars ($1,800) but less than three thousand dollars ($3,000). A "minor accident" is an at‑fault accident that results in only property damage of one thousand eight hundred dollars ($1,800) or less. The subclassification plan may also exempt certain minor accidents from the Facility recoupment surcharge. The Facility shall assign varying Safe Driver Incentive Plan point values and surcharges for bodily injury in at‑fault accidents that are commensurate with the severity of the injury, provided that the point value and surcharge assigned for the most severe bodily injury shall not exceed the point value and surcharge assigned to a major accident involving only property damage.
(b) The subclassification plan shall provide that there shall be no premium surcharge or assessment of points against an insured where (i) the insured is involved and is at fault in a "minor accident," as defined in subsection (a) of this section; (ii) the insured is not convicted of a moving traffic violation in connection with the accident; (iii) neither the vehicle owner, principal operator, nor any licensed operator in the owner's household has a driving record consisting of one or more convictions for a moving traffic violation or one or more at‑fault accidents during the three‑year period immediately preceding the date of the application for a policy or the date of the preparation of the renewal of a policy; and (iv) the insured has been covered by liability insurance with the same company or company group continuously for at least the six months immediately preceding the accident. Notwithstanding (iv) of this subsection, if the insured has been covered by liability insurance with the same company or company group for at least six continuous months, some or all of which were after the accident, the insurance company shall remove any premium surcharge or assessment of points against the insured if requirements (i), (ii), and (iii) of this subsection are met. Also notwithstanding (iv) of this subsection, an insurance company may choose not to assess a premium surcharge or points against an insured who has been covered by liability insurance with that company or with the company's group for less than six months immediately preceding the accident, if requirements (i), (ii), and (iii) are met.
(c) The subclassification plan shall provide that there shall be no premium surcharge or assessment of points against an insured where (i) the insured's drivers license has been revoked under G.S. 20‑16.5; and (ii) the insured is subsequently acquitted of the offense involving impaired driving, as defined in G.S. 20‑4.01(24a), that is related to the revocation, or the charge for that offense is dismissed. In addition, no insurer shall use, for rating, underwriting, or classification purposes, including ceding any risk to the Facility or writing any kind of coverage subject to this Article, any license revocation under G.S. 20‑16.5 if the insured is acquitted or the charge is dismissed as described in this subsection.
(d) There shall be no Safe Driver Incentive Plan surcharges under G.S. 58‑37‑80 for accidents occurring when only operating a firefighting, rescue squad, or law enforcement vehicle in accordance with G.S. 20‑125(b) and in response to an emergency if the operator of the vehicle at the time of the accident was a paid or volunteer member of any fire department, rescue squad, or any law enforcement agency. This exception does not include an accident occurring after the vehicle ceases to be used in response to the emergency and the emergency ceases to exist.
(e) The subclassification plan shall provide that with respect to a conviction for a "violation of speeding 10 miles per hour or less over the speed limit" there shall be no premium surcharge nor any assessment of points unless there is a driving record consisting of a conviction or convictions for a moving traffic violation or violations, except for a prayer for judgment continued for any moving traffic violation, during the three years immediately preceding the date of application or the preparation of the renewal. The subclassification plan shall also provide that with respect to a prayer for judgment continued for any moving traffic violation, there shall be no premium surcharge nor any assessment of points unless the vehicle owner, principal operator, or any licensed operator in the owner's household has a driving record consisting of a prayer or prayers for judgment continued for any moving traffic violation or violations during the three years immediately preceding the date of application or the preparation of the renewal. For the purpose of this subsection, a "prayer for judgment continued" means a determination of guilt by a jury or a court though no sentence has been imposed. For the purpose of this subsection, a "violation of speeding 10 miles per hour or less over the speed limit" does not include the offense of speeding in a school zone in excess of the posted school zone speed limit.
(f) The subclassification plan shall provide that in the event an insured is at fault in an accident and is convicted of a moving traffic violation in connection with the accident, only the higher plan premium surcharge between the accident and the conviction shall be assessed on the policy.
(g) As used in this section, "conviction" means a conviction as defined in G.S. 20‑279.1 and means an infraction as defined in G.S. 14‑3.1.
(h) The Facility shall assign one insurance point under the Safe Driver Incentive Plan for persons who fail to yield to a pedestrian under G.S. 20‑158(b)(2)b."
SECTION 7. On or before October 1, 2016, and again on or before October 1, 2018, the Executive Director and the Chair of the Board of Governors of the North Carolina Reinsurance Facility shall report to the Joint Legislative Commission on Governmental Operations on the size and market share of the Reinsurance Facility, and the analysis of the Reinsurance Facility of the effect of the flex‑rating authorized by Article 37A of the General Statutes in reducing the size of the Reinsurance Facility. The reports shall include the recommendations, if any, of the Reinsurance Facility of transitioning the North Carolina involuntary automobile insurance mechanism from a reinsurance facility to an assigned risk plan, joint underwriting association, or other mechanism for an involuntary automobile insurance market.
SECTION 8. Sections 6(a) and 7 of this act become effective October 1, 2012. The remainder of this act becomes effective October 1, 2014.
