NC H265

Allows insurers writing nonfleet private passenger motor vehicle insurance to elect by January 1, 2015, to develop rates under either the traditional Article 36 regulatory framework or the new flexible Article 37A framework, with no election defaulting to Article 36.

Creates Article 37A "Motor Vehicle Insurance Flex-Rating" permitting rate increases or decreases up to 12% annually to take effect immediately upon filing without prior Commissioner approval, presumed compliant with rate standards unless Commissioner holds a hearing and finds the rate excessive, inadequate, or unfairly discriminatory.

Rate filings exceeding 12% annually remain subject to standard Articles 40 and 41 approval processes requiring 60 days' notice and supporting actuarial data.

Eliminates the separate "clean risks" subclassification in the North Carolina Reinsurance Facility and removes the five-year schedule (2014-2018) for equalizing Facility rates with actuarially sound rates for low-risk drivers.

Removes age and sex as prohibited rating factors for private passenger automobiles and motorcycles, while retaining prohibitions on discrimination based on blindness, deafness, race, color, or national/ethnic origin.