[S112b]

surcharge points

1) When referring to motor vehicle reports (MVRs), it refers to additional rating factors (or points) that insurance companies add to the premiums charged to drivers who accumulate traffic violations or accidents. The surcharges are typically assessed for a defined period (such as 36 months) from the date of the violation or accident.

2) With respect to automated underwriting systems (AUS), it usually refers to deficiency points assessed against a risk being run through the system. When a specified number of points accumulate, the risk either receives a rating surcharge, is declined or triggers a manual review of the account by an actual underwriter.