NC S294

Phaseout of "clean risk" subclassification within the Reinsurance Facility over two years (2018-2020), with rates gradually converging to actuarially sound rates for all risks by December 31, 2020.

Allows insurers to elect to develop motor vehicle insurance rates under either Article 36 (rate bureau) or Article 40 (independent rating), rather than requiring mandatory rate bureau membership.

Reduces the cession limit to the Reinsurance Facility from 95% to 85% of direct written motor vehicle insurance premiums unless the insurer obtains Commissioner approval.

Caps the ceding expense allowance at 20% of total North Carolina motor vehicle premiums for insurers ceding more than 75% of their direct written premiums to the Facility.

Allows insurers writing nonfleet private passenger motor vehicle insurance to opt out of mandatory participation in the rate bureau by electing to develop independent rates and forms.