North Carolina Rate Bureau Adds New Rules – Changes Others
The North Carolina Rate Bureau (NCRB) mostly followed the new national rules from NCCI on most of their rule changes. However, the Bureau added in a few changes that did not follow NCCI.

You may find the document at the North Carolina Rate Bureau website. The circular letter was entered behind a password protected website. I have summarized the letter below.
- Premium Audit Compliance – The NCRB followed most of the nation for premium audit non-compliance with a few exceptions that are specifically North Carolina-based
- Insureds that fail to respond to a carrier’s request to audit or refuse to allow access to records needed to complete the audit, may be subject to a charge of up to three (3) times the estimated annual premium for their policy.
- Carriers must endorse the policy with the Audit Noncompliance Endorsement (WC 00 04 24) at inception to be allowed to impose the charge. This endorsement is required on all policies in the Assigned Risk market.
- An insured that fails to respond to an audit request or refuses access to records needed to complete an audit will not be eligible for assigned risk coverage through the North Carolina Workers Compensation Insurance Plan.
- Assigned Risk Plan – these are the following carriers for the North Carolina Assigned Risk Plan
- The Servicing Carriers selected are:
- AmGuard Insurance Company
- LM Insurance Corporation (The Liberty group was previously accepting direct assignments)
- Travelers Property & Casualty Company of America
- In addition to the servicing carriers, there are multiple direct assignment carriers writing residual market coverage for North Carolina. As of January 1, 2017 the direct assignment carriers are:
StockUnlimited - ACE American Insurance Company
- American Interstate Insurance Company
- American Zurich Insurance Company
- Auto Owners Insurance Company
- Builders Mutual Insurance (previously Builders Premier)
- Cincinnati Insurance Company
- Continental Casualty Company
- Hartford Underwriters Insurance Company
- The Servicing Carriers selected are:
What is the difference between a Servicing Carrier and a Direct Assignment Carrier?
Servicing Carrier
- Provides coverage to eligible employers on behalf of all pool participants.
- Is fully reinsured through the National Reinsurance Pool.
- Selected for a 3 year period through a bid process.
- Quota determined as part of bid process.
Direct Assignment Carrier
- Not reinsured through the National Reinsurance Pool.
- Solely responsible for financial results of assignments.
- Notification to NCRB annually on desire to be a Direct Assignment Carrier.
- Quota is equal to percentage share in voluntary market.
PEO Regulation Changes

The North Carolina Rate Bureau decided that wording on policy endorsement forms needed to clarify which employees are to be covered by policies issued to the PEO and their client company(s).
Rule 3.D was revised to more clearly define how policies are to be written and endorsed to ensure that workers compensation insurance coverage is being provided for employees of PEOs and their clients in accordance with North Carolina statutes and regulations.
Class Code Changes
These will be analyzed along with the National changes to the codes by NCCI. The North Carolina Rate Bureau followed NCCI on most classification codes with a few exceptions.
There are additional changes that will be covered in a future post once fully analyzed.
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