Senate Bill 154 Summary

• Allows insurers writing nonfleet private passenger motor vehicle insurance to elect by January 1, 2015, between two regulatory frameworks: Article 36 (existing) or Articles 40 and 37A (new flex-rating system).

• Creates Article 37A permitting rate increases or decreases of up to 12% statewide to take effect immediately upon filing, with Commissioner review limited to determining if rates are excessive, inadequate, or unfairly discriminatory.

• Removes the prohibition on basing auto insurance rates on age or sex of insured persons, effective January 1, 2015.

• Eliminates the special "clean risks" subclassification in the North Carolina Reinsurance Facility effective January 1, 2019, with a five-year phase-out period (2014-2018) for existing clean risk rates.

• Requires the Reinsurance Facility to report to the General Assembly by October 1, 2016, and 2018, on its market share and the act's effect on facility size.