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 applied that reduce the amount of premium used in calculating insurers’ Plan participation base.
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, Oregon, South Carolina, South Dakota, Tennessee, Vermont, Virginia, and West Virginia.
Highlights for this program include:
- The automated residual market
TOC Program identifies eligible policies and determines the take-out credit based on the filed and approved program in each applicable state
- Annual electronic notification of the carrier's estimated take-out credit, including detailed information on policies, premium, and credit calculations by state
- Ability to review the TOC report and revise policy information, if needed
- Electronic request for the NCCI calculated take-out credit
- Historical view of take-out credits