Assigned risk insurance is provided for a group of people who have been denied liability insurance coverage for various reasons, yet are required by law to carry insurance. The government then assigns them to insurance companies who will provide liability insurance or Workers Compensation for a rate higher than the conventional rate. There are a multitude of common questions for N.C. assigned risk services for customers that will be addressed.

How is Your Premium Determined?

Your premium will depend on many factors such as rates, payroll expenditures and experience modification factors. Keep in mind that the quote given is considered to be an estimate and your actual premium may differ.

What is Experience Modification Factor?

Your experience modification factors will be considered when determining your premium for N.C. workers’ compensation insurance. Your state-rating bureau (The National Council on Compensation Insurance) is responsible for determining the amount based on the extent of your business losses.

Can Your Premium Be Decreased? 

Make sure when you are compiling all documented materials that you are in compliance with the premium auditors. Your North Carolina broker or agent can work with you to determine the different coverage options available to you. Make sure all payroll information is accurate and detailed. Also, you must provide thorough workers’ compensation certificates of insurance for anybody that performed work for you so this can be deducted from payroll entries. All of this information can allow for more accurate premium calculations.

What is a Premium Audit?

The premium audit is done by a group of auditors who review all of the compiled information to calculate your final premium. The audit evaluation is then compared to the original approximation of anticipated exposures. This audit process is to ensure your business pays the amount of premium based on actual exposures.

What Information Will the N.C. Auditor Need?

The N.C. auditor will be able to obtain most of the needed materials from one or more of the following:

  • Financial Statements
  • Cash Disbursements Logs
  • Payroll and Sales Records
  • Individual Earnings Records or Workers’ Compensation Earnings
  • Quarterly Tax Reports
  • General Ledger
  • Subcontractor Costs and Insurance Certificates

The more thorough and detailed your records, the smoother the audit will run.

What if You Don’t Agree with the Audit?

If you are dissatisfied with the results of the audit, you may present a formal dispute, but must included the following items to be considered:

  • A complete written explanation of why you believe your premium amount is incorrect and all pertinent documentation.
  • A complete written explanation of what you consider your calculated premium to be. 
  • Payment of any undisputed portions of the premium owed, submitted by the bill’s due date.

How Do You Cancel Your Policy?

If you are still dissatisfied with the outcome, contact your broker or agent and submit a written request on company letterhead requesting cancellation, effective on a specified date. Be aware that you must provide proof of coverage with another carrier showing verification of effective dates and policy number.

Contact our office at 866-869-3335 for any additional questions you may have regarding assigned risks services available.

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