This article provides background information about take-out credit (TOC) and provides links to key information and tools necessary for you to process your annual take-out credit results.
NCCI's Take-Out Credit (TOC) Program encourages the depopulation of the residual market by providing a credit incentive to insurers for moving a risk from the residual market to the voluntary market.
Credits are produced annually and are based on the premium associated with the policy moving from assigned risk to the voluntary market. The credits are then deducted from the overall state-written premiums as reported on Statutory Page 14 data.
Details for the TOC Program are described in NCCI’s
Residual Market Manual. NCCI administers the TOC Program in the following states: Alabama, Alaska, Arizona, Arkansas, Connecticut, District of Columbia, Georgia, Illinois, Indiana, Iowa, Kansas, Mississippi, New Hampshire, New Mexico, Oklahoma*, Oregon, South Carolina, South Dakota, Tennessee, Vermont, Virginia, and West Virginia.
Below is a high-level explanation of the process.
How the TOC Program Works
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Enrollment in the TOC Program—To be eligible for take-out credit, carriers must ensure that they are enrolled and have provided NCCI with the correct contact information per the instructions in this circular. Once enrolled, carriers remain enrolled for future TOC results. Contact updates can be made through NCCI’s Customer Service Center.
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TOC Results—TOC contacts are notified via email that the credits are available for review. The TOC results are accessible through the
TOC System located under the Tools link in the
Policy Data Collection tool. You must review your results for accuracy.
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Applying for TOC—Once you complete your review of the data, you must take action to receive TOC. Credits must be accepted through the
TOC System by the published deadline for the credits to apply.
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Determination of Appropriate TOC—Once your application for TOC is received and processed by NCCI’s TOC administrator, NCCI’s Residual Market Finance Department will adjust your company’s voluntary market share based on the amount of TOC accepted. This will assist you in determining your company’s Plan participation base.
Tools and Resources
For details on the TOC Program, including the timeline and enrollment process, view Circular
Plan—Take-Out Credit Program (Plan-2025-01).
Authorized users can view or accept take-out credit by accessing the
Policy Data Collection tool and choosing Tools from the upper left-hand menu option.
To learn more about how take-out credit is determined and for a demonstration on how to view and accept your credit, view these webinars:
*Policies June 1, 2024, and subsequent.
