Expense Allowances

How is my company reimbursed expenses associated with processing Facility policies?

Once a year the NCRF Board of Governors determines the appropriate Ceding Expense Allowance and Claims Expense Allowance. The Ceding Expense Allowance is designed to defray the costs of underwriting and servicing polices ceded to the Facility. The Claims Expense Allowance is designed to defray the costs of adjusting claims on policies ceded to the Facility. These allowances will be calculated as a percentage of ceded Written Premium and appear on the monthly Account Activity statements. Your company will be credited these amounts against any amounts owed the Facility on this statement. For more information on the development of these allowances refer to Section 2, Article XII Allowances to Members and Section 4, Chapter 9 Expense Allowance Development of the NCRF Standard Practice Manual or view them online at: http://www.ncrb.org/ncrf