Answer: The auto loss recoupment surcharge is the method of recovering the NC Reinsurance Facility operating losses. It applies to auto liability (bodily injury and property damage), medical payments, uninsured motorist and underinsured motorist premiums.

The Reinsurance Facility is a mechanism for pooling of insurance risks who cannot obtain coverage by ordinary methods. Premiums, losses, and expenses are shared by the member companies in proportion to their respective North Carolina automobile liability insurance writings.

A completed Form NCRF-31 is required when the higher limits are necessary to obtain or continue a personal excess liability or personal “umbrella” insurance policy. The initial certification remains in effect for subsequent renewals of the policy as long as the insured remains eligible for the higher coverage limits.

The Reinsurance Facility is a mechanism for pooling of insurance risks who cannot obtain coverage by ordinary methods. Premiums, losses, and expenses are shared by the member companies in proportion to their respective North Carolina automobile liability insurance writings.

By definition, you are considered "clean risk" if you have at least two years of driving experience, with neither traffic violations nor at-fault accidents on your record. Car insurers can cede these "clean risk" policies to the NCRF in order to help balance out the high-risk losses.