A BILL TO BE ENTITLED
AN ACT to allow insurance companies writing private automobile insurance in north carolina to offer optional program enhancements.
The General Assembly of North Carolina enacts:
SECTION 1.  Article 36 of Chapter 58 of the General Statutes is amended by adding a new section to read:
"§ 58‑36‑43.  Private passenger automobile optional program enhancements authorized not altering coverage under Rate Bureau jurisdiction.
(a)	Member companies writing private passenger automobile insurance under this Article may incorporate optional enhancements to their automobile programs as an endorsement to an automobile policy issued under this Article if the insurer has filed the proposed enhancement with the Commissioner and if the proposed enhancement is approved by the Commissioner. Any approved optional enhancements shall be considered outside the authority of the Rate Bureau. If the proposed enhancement will include an additional premium charge, the proposed premium charge shall be included with the proposed program enhancements filed with the Commissioner. The Commissioner shall review the proposed premium charges to ensure that they are based on sound actuarial principles. Amendments to private passenger automobile program enhancements are subject to the same requirements as initial filings. Neither the acceptance, renewal of a policy, nor any underwriting rating criteria shall be conditioned by a company upon the acceptance by the policyholder of any optional automobile enhancements. A rate amendment authorized by this section is not a rate deviation and is not subject to the requirements for rate deviations set forth in G.S. 58‑36‑30(a).
(b)	Any premiums, expenses, or losses associated with individual company automobile program enhancements shall not be submitted by the member companies to their statistical organization for inclusion with the data required by the Rate Bureau for ratemaking purposes. Insurers shall utilize a statistical code for reporting premiums and losses resulting from program enhancements filed under this section and shall advise the Department as to the location in the annual statement where this code will be reported."
SECTION 2.  This act becomes effective July 1, 2013.