North Carolina Senate Bill 125 Summary

• Amends insurance rate-making laws to require consideration of investment income from capital and surplus, and restricts use of countrywide data only when credible North Carolina experience is unavailable.

• Prohibits insurance companies from conditioning policy acceptance, renewal, underwriting criteria, or rating criteria on policyholders accepting optional automobile or homeowners' enhancements.

• Extends surcharge periods for convictions with four or more points from three to five policy years, effective October 1, 2024.

• Allows inexperienced drivers licensed after September 30, 2022 to be surcharged for up to eight years instead of three years, but creates an inexperienced safe driver discount after three years of clean driving record.

• Changes lookback period for minor speeding violations and prayers for judgment continued from three to five years for premium surcharge assessment, effective October 1, 2023.