Which entity governs the North Carolina Motor Vehicle Reinsurance Facility?

The North Carolina Motor Vehicle Reinsurance Facility is governed by a board consisting of 12 directors. This structure allows for a diverse representation of interests and expertise within the insurance industry, particularly focused on providing affordable auto insurance to high-risk drivers who may not be able to obtain insurance through standard markets. The board's role includes overseeing the operations of the facility, making policy decisions, and ensuring that the facility meets its obligations to policyholders and the insurance market.

In contrast, a single appointed commissioner would lack the broad representation necessary for effective governance and would concentrate too much power in one individual. A committee of the state legislature does not directly govern insurance facilities, as legislative bodies typically focus on creating laws rather than managing operational entities. Local insurance agents, while they play an essential role in the insurance market, do not have the authority or structure needed to govern a facility such as this. The board of directors provides a structured and accountable means of overseeing the facility's functions, which is crucial for its effectiveness in fulfilling its mission.