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  • North Carolina Reinsurance Facility

Commercial Auto Loss Recoupment

The previously communicated commercial auto loss recoupment surcharge percentage has been REDUCED. The original surcharge percentage of 14.63% before agent compensation shared in previous circulars has been lowered to 7.07%. The October 1, 2018 effective date of the surcharge is unchanged.

The North Carolina Reinsurance Facility Board of Governors has made a decision to spread the commercial auto loss recoupment over more than one year. The loss recoupment surcharge will be reviewed at least annually to determine the appropriate percentage and duration.

The new commercial auto loss recoupment surcharge will apply to commercial (other than non-fleet private passenger) automobile business only as follows:

Line Code: CA51

Recoupment Type: Loss

Applicable to Policies Effective: 10/1/18 - 09/30/19

Policy Type: Commercial Auto

Surcharge (Before Agent Comp): 7.07%


For commercial automobile business, the loss recoupment surcharge of 7.07% (before inclusion of agent compensation) will be applicable in accordance with law to policies issued to become effective during the twelve months beginning October 1, 2018. The commercial auto loss recoupment surcharge is necessary to recoup losses sustained by the NC Reinsurance Facility on ceded commercial auto business.

The surcharge will apply to all commercial auto policies whether ceded to the NC Reinsurance Facility or retained as voluntary business by your company.

For more information, contact Standard Insurance.

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