{"data":{"id":"us-nc/n.c.-gen.-stat.-58-36-15","jurisdiction":"us-nc","citation":"N.C. Gen. Stat. § 58-36-15","heading":"Filing loss costs, rates, plans with Commissioner; public inspection of filings.","body":"(a)\tThe 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.\n(b)\tA filing by the Rate Bureau shall be open to public inspection immediately upon submission to the Commissioner. All property insurance rate filings shall be open to the public except as provided in this Article where necessary to maintain the confidentiality of certain testimony. At least 30 days before a notice of hearing issues, the Department shall receive comments from the public regarding a property insurance rate filing. The comments may be provided to the Department by email, mail, or in person at a time and place set by the Department. All public comments shall be shared with the Rate Bureau in a timely manner.\n(c)\tThe 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.\n(d)\tWith 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.\n(d1)\tWith respect to property insurance rates, the Bureau shall file no later than May 1, 2010, a schedule of credits for policyholders based on the presence of mitigation and construction features and on the condition of buildings that it insures in the beach and coastal areas of the State. The Bureau shall develop rules applicable to the operation of the schedule and the mitigation program with approval by the Commissioner. The schedule shall not be unfairly discriminatory and shall be reviewed by the Bureau annually, with the results reported annually to the Commissioner.\n(d2)\tThe following supporting data, at a minimum, shall be included in any property insurance rate filing where a catastrophe model is used:\n(1)\tAny simulated loss from a catastrophe model should include the following:\na.\tAn event identifier.\nb.\tThe simulation year.\nc.\tThe State and county of first landfall, and the wind speed, based upon the Saffir-Simpson scale, at landfall.\nd.\tThe gross amount of North Carolina damages before application of any deductible or other applicable policy provisions that impact the coverage, calculated with and without any applicable demand surge adjustments.\ne.\tThe net amount of North Carolina insured loss after application of any deductible or other applicable policy provisions that impact the coverage, calculated with and without any applicable demand surge adjustments.\nf.\tAny other information required by rules promulgated by the Commissioner.\n(2)\tAnnual historical exposure and hurricane loss data by territory for 2003 and each subsequent year. The Bureau shall also provide annual historical exposure and hurricane loss data by territory for 1987 through 2002 to the extent this data is reasonably available.\n(3)\tIf requested by the Department, a statistical analysis comparing the historic loss data required by subdivision (2) of this subsection with any simulated losses used to support the rate filing.\n(4)\tTrade secret information provided under this subsection is confidential and shall be handled in accordance with the provisions of G.S. 66-152 and G.S. 132-1.2.\n(d3)\tIn all residential property insurance rate filings, the Bureau shall set forth for each territory in the State (i) that portion of the rate based on all risks with the exception of wind and hail and (ii) that portion of the rate based on consideration of risks and the costs of reinsurance for wind and hail. The Department shall post both the filed rate and the final rate for each territory on its website, including that portion of the filed rate and the final rate for each territory based on all risks with the exception of wind and hail and that portion based on wind and hail.\n(e)\tThe Commissioner may require the filing of supporting data including:\n(1)\tThe Bureau's interpretation of any statistical data relied upon;\n(2)\tDescriptions of the methods employed in setting the rates;\n(3)\tAnalysis of the incurred losses submitted on an accident year or policy year basis into their component parts; to wit, paid losses, reserves for losses and loss expenses, and reserves for losses incurred but not reported;\n(4)\tThe total number and dollar amount of paid claims;\n(5)\tThe total number and dollar amount of case basis reserve claims;\n(6)\tEarned and written premiums at current rates by rating territory;\n(7)\tEarned premiums and incurred losses according to classification plan categories; and\n(8)\tIncome from investment of unearned premiums and loss and loss expense reserves generated by business within this State.\nProvided, however, that with respect to business written prior to January 1, 1980, the Commissioner shall not require the filing of such supporting data which has not been required to be recorded under statistical plans approved by the Commissioner.\n(f)\tOn or before September 1 of each calendar year, or later with the approval of the Commissioner, the Bureau shall submit to the Commissioner the experience, data, statistics, and information referred to in subsection (c) of this section and required under G.S. 58-36-100 and a residual market rate or prospective loss costs review based on those data for workers' compensation insurance and employers' liability insurance written in connection therewith. Any rate or loss costs increase for that insurance that is implemented under this Article shall become effective solely to insurance with an inception date on or after the effective date of the rate or loss costs increase.\n(g)\tThe following information must be included in policy form, rule, and rate or loss costs filings under this Article and under Article 37 of this Chapter:\n(1)\tA detailed list of the rates, loss costs, rules, and policy forms filed, accompanied by a list of those superseded; and\n(2)\tA detailed description, properly referenced, of all changes in policy forms, rules, prospective loss costs, and rates, including the effect of each change.\n(h)\tExcept to the extent the Commissioner determines that this subsection is inapplicable to filings made under G.S. 58-36-100 and except for filings made under G.S. 58-36-30, all policy form, rule, prospective loss costs, and rate filings under this Article and Article 37 of this Chapter that are based on statistical data must be accompanied by the following properly identified information:\n(1)\tNorth 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;\n(2)\tCredibility factor development and application;\n(3)\tLoss development factor derivation and application on both paid and incurred bases and in both numbers and dollars of claims;\n(4)\tTrending factor development and application;\n(5)\tChanges in premium base resulting from rating exposure trends;\n(6)\tLimiting factor development and application;\n(7)\tOverhead expense development and application of commission and brokerage, other acquisition expenses, general expenses, taxes, licenses, and fees;\n(8)\tPercent rate or prospective loss costs change;\n(9)\tFinal proposed rates;\n(10)\tInvestment earnings, consisting of investment income and realized plus unrealized capital gains, from loss, loss expense, and unearned premium reserves;\n(11)\tIdentification of applicable statistical plans and programs and a certification of compliance with them;\n(12)\tInvestment earnings on capital and surplus;\n(13)\tLevel of capital and surplus needed to support premium writings without endangering the solvency of member companies; and\n(14)\tSuch other information that may be required by any rule adopted by the Commissioner.\nProvided, however, that no filing may be returned or disapproved on the grounds that such information has not been furnished if insurers have not been required to collect such information pursuant to statistical plans or programs or to report such information to the Bureau or to statistical agents, except where the Commissioner has given reasonable prior notice to the insurers to begin collecting and reporting such information, or except when the information is readily available to the insurers.\n(i)\tThe Bureau shall file with and at the time of any rate or prospective loss costs filing all testimony, exhibits, and other information on which the Bureau will rely at the hearing on the rate filing. The Department shall file all testimony, exhibits, and other information on which the Department will rely at the hearing on the rate filing 20 days in advance of the convening date of the hearing. Upon the issuance of a notice of hearing the Commissioner shall hold a meeting of the parties to provide for the scheduling of any additional testimony, including written testimony, exhibits or other information, in response to the notice of hearing and any potential rebuttal testimony, exhibits, or other information. This subsection also applies to rate filings made by the North Carolina Motor Vehicle Reinsurance Facility under Article 37 of this Chapter. (1977, c. 828, s. 6; 1979, c. 824, s. 2; 1981, c. 521, s. 1; 1985, c. 666, s. 3; 1985 (Reg. Sess., 1986), c. 1027, ss. 2, 3; 1993, c. 409, s. 10; 1995, c. 505, s. 2; 1999-132, ss. 3.4-3.6; 2002-187, s. 4.1; 2009-472, s. 3; 2012-162, s. 1; 2016-78, s. 1.3(c); 2025-25, s. 29(1), (5).)","path":["Chapter 58. Insurance.","Article 36. North Carolina Rate Bureau."],"source_url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_58/GS_58-36-15.html","current_through":"S.L. 2026-30","vintage":"","retrieved_at":"2026-08-27T18:06:53Z","sha256":"90bec40b1046508b456ce8788461026934ed198ebc02161e87f531b7835b7a9a","source_id":"us-nc","stale":false,"prev":"us-nc/n.c.-gen.-stat.-58-36-10","next":"us-nc/n.c.-gen.-stat.-58-36-16"},"notice":"GroundRules: Original legal text. Not legal advice."}