NC H287

Increases maximum rate surcharges for auto insurance accidents, adjusting thresholds for major ($3,085 to $3,850), intermediate ($1,850 to $2,300), and minor accidents ($1,850 to $2,300) effective October 1, 2017.

Caps annual long-term care insurance rate increases at 25% of current premium and requires insurers to disclose premium comparisons using approved rates versus deviation rates with 30-day notice for residential property insurance.

Enhances commercial auto rate evasion fraud penalties by creating a Class F felony for losses of $100,000 or more (vs. Class H felony for lesser amounts) and adds Class H felony for applicants misrepresenting eligibility on commercial driver license vehicle insurance.

Reforms captive insurance law by removing "controlled unaffiliated business" references, allowing provisional licensing for up to 90 days, permitting board meeting exemptions for captive insurers using multiple North Carolina-based service providers, and allowing Commissioner to waive or modify captive insurance provisions.

Exempts certain accountable care organizations approved by Medicare and Medicaid Services (CMS) from Department of Insurance regulation and authorizes the Department to plan for establishing a private flood insurance market if federal government permits state-based markets.