In North Carolina
, the reinsurance facility is basically a non-profit organization that allows insurance companies to pool the risk of high risk drivers to keep rates low for consumers and create less risk for insurance companies themselves. Since insurance rates in North Carolina are capped, an insurance provider can cede (transfer) your policy to the reinsurance facility so that they share the risk with all other companies in the organization and you still benefit from a fair price. It's a fairly complicated subject so I would recommend sitting down with an agent in North Carolina for a more "hands-on" explanation. Best of luck!