- (a) A surcharge disclosure plan shall describe the circumstances and conditions when a surcharge would be applied, the estimated increase of the surcharge per policy period per policyholder and the number of years a surcharge will be in effect. The estimated increase of the surcharge may be stated as a percent or dollar amount of premium increase. The estimated increase may also be stated as a percentage of the base premium if the insurer describes the manner in which the prospective or named insured’s premium relates to the base premium.
- (b) The insurer shall disclose the approved dollar threshold in the surcharge disclosure plan.
- (c) The insurer shall disclose in the surcharge disclosure plan whether the insurer will assess a premium surcharge due to the payment of an at-fault accident by another insurer.