§ 58-40-45. Disapproval of rates; interim use of rates. - North Carolina Statutes

§ 58‑40‑45. Disapproval of rates; interim use of rates.

(a)        If, after ahearing, the Commissioner disapproves a rate, he must issue an order specifyingin what respects the rate fails to meet the requirements of G.S. 58‑40‑20.If the Commissioner finds a rate to be excessive, he shall order the excesspremium, plus interest at a rate determined in the same manner as in G.S. 58‑36‑25(b)as of the dates such rates were effective for policyholders, to be refunded tothose policyholders who have paid the excess premium. If the Commissioner findsa rate to be unfairly discriminatory, he shall order an appropriate adjustmentfor policyholders who have paid the unfairly discriminatory premium. The ordermust be issued within 30 business days after the close of the hearing.

(b)        Whenever a rate ofan insurer is held to be unfairly discriminatory or excessive and the rate isdeemed no longer effective by order of the Commissioner issued under subsection(a) of this section, the insurer shall have the option to continue to use therate for the interim period pending judicial review of the order, provided thatthe insurer shall place in an escrow account approved by the Commissioner thepurported unfairly discriminatory or excessive portion of the premium collectedduring the interim period. The court, upon a final determination, shall orderthe escrowed funds or any overcharge in the interim rates to be distributedappropriately, except that refunds to policyholders that are de minimis shallnot be required.

(c)        No person shallwillfully withhold information required by this Article from or knowinglyfurnish false or misleading information to the Commissioner, any statisticalorganization designated by the Commissioner, or any insurer, which informationwill affect the rates, rating plans, loss costs, classifications, or policyforms subject to this Article. (1977, c. 828, s. 2; 1985 (Reg. Sess., 1986), c. 1027,ss. 12, 12.1; 2005‑210, s. 6.)