RCE Law Changes Effective Aug 2022
Included in Senate Bill 496 (effective August 1, 2022) was a change to NC General Statues to specifically prohibit the requesting of a replacement cost estimator (RCE) from an insurance company or their designated agent.
Violations of this law are subject to investigation and sanction by the NC Department of Insurance.
IIANC offers this one page flyer for our members to provide lenders who may request an RCE because they are unaware of the change to the law.
Fact sheet above updated 5/10/24
Need Help?
IIANC has been advised by members that there are some lenders that are not asking specifically for the Replacement Cost Estimator (RCE) and are instead asking the agent to put in writing that a RCE was used to estimate replacement value and the property was insured to 100% of replacement cost.
The lender is essentially asking the agent to put into writing something that crosses into guaranteeing insurance adequacy, which is a major E&O red flag.
We have put together some helpful tips and best practices to navigate this issue:
We have also provided two sample responses to lenders that agents could consider using: