Filing new rates to collect surcharges
We consider your current rates to include fraud and regulatory surcharges. You're already collecting surcharges through premiums.
If you want to collect fraud and regulatory surcharges from policyholders, you need to file new rates (if your line of business requires filings for rates or rating manuals). You need to reduce your new rates by the amount you'll collect from a policyholder surcharge. Don't include the policyholder surcharge in the manual of rates and rules.
Collecting surcharges from only some lines
You can collect fraud and regulatory surcharges from policyholders on some lines and not others. If you do, follow the rules below:
You should base the policyholder surcharge on the part of the fraud and regulatory surcharges that apply to that policy. For example, if 40% of your yearly premiums come from personal lines auto policies, you should charge 40% of your fraud and regulatory surcharges to those policies.
Also, you should base policyholder surcharges on a policy’s yearly premium, not a fixed amount that doesn't consider the premium.
Learn how to calculate the fraud and regulatory surcharge.
If you charge policyholders too much or too little for surcharges
If you collect more than you owe for fraud and regulatory surcharges, you need to reduce the next year's policyholder surcharge by the extra amount. If you collect less than you owe, you may increase the next year's surcharge by what you didn't collect.
Approval for collecting surcharges
We don't need to approve policyholder surcharges. If you send them to us, we'll return them without reviewing them.