Property Insurance Renewal and Billing Information
Each state agency or university is billed for its property insurance on an annual basis by the State Property Fire Insurance Fund. The period of time from one billing cycle to the next is referred to as the coverage period. Your agency will be sent an invoice approximately 30 days prior to the beginning of this period, and the insurance premium is due on the first day of the coverage period.
Approximately three months prior to your coverage period beginning date, an electronic printout, showing the existing property, insurance coverage and coverage amounts, is sent to your agency along with a letter advising you to notify the State Property Fire Insurance Fund of any additions, deletions or changes. This updated renewal information should be returned to the Fund in approximately 45 days (the specific due date is indicated in the letter).
The coverage periods for the agencies and universities are staggered throughout the year for efficiency in the billing operation. Therefore, it is imperative that your updated renewal information be returned by the requested date to avoid overlaps with the billing of other agencies or universities. Also, if the updated renewal information is not returned by the due date, your agency will be billed based on the information in our files. Subsequent adjustments in your property insurance may necessitate additional billing. If the property has not been reported to the Fund or the values or coverage have not been updated, there is a possibility that you may not be properly insured at the time of a loss. Claims will be adjusted based on the locations, values and coverage on file at the time of the loss.
If the insurance premium is not received by the Fund within 30 days of the due date, a letter will be sent to your agency requesting payment. A follow-up letter is sent to your agency if the account is 60 days old. If payment is not received within 90 days of the due date, a letter may be sent to the Attorney General’s office for collection with a copy to your agency.
Interest may be charged on accounts that are more than 30 days old in accordance with the Statewide Accounts Receivable Program Policy and Procedures Manual.
Who Pays for the Property Insurance?
In accordance with G.S. 58-31-5, the State Property Fire Insurance Fund (the Fund) charges any special operating fund for fire insurance. For operations that are supported from General Fund appropriations, the Fund provides fire insurance at no charge to the agency.
Special Operating Funds include activities that receive financial support from sources other than General Fund appropriation. This would include gifts, donations, federal funds or grants, overhead federal receipts retained by the agency or institution, revenue producing endeavors, and fees that would be used for the operation of a program or facility.
Since state agencies and departments may receive part of their support from General Fund appropriation and part from special operating funds, the Fund uses the 50% rule to determine if an agency should be charged for the fire insurance. If 50% or more of the financial support for an activity is from special operating funds, the agency or department is charged for fire insurance, and if less than 50%, fire insurance is provided by the Fund at no charge to the agency or department.
The Fund charges all agencies, departments and universities for all other property insurance perils.