CARC Code

P1

🟡 Soft Denial

State-Mandated Property and Casualty Requirement

This code is used exclusively for property and casualty insurance claims when a state law requires specific handling or documentation. The actual reason for the adjustment will be explained in the accompanying remarks code.

contractual
Resolution: 85%Easy difficulty3-7 days avg

How to resolve this denial

Review and resolve CARC P1: State-mandated Requirement for Property and Casualty, including but not limited to, automobile, no fault and workers' compensation insurance.

  1. 1

    Review the full denial on the 835 ERA for CARC P1: "State-mandated Requirement for Property and Casualty, including but not limited to, automobile, no fault and workers' compensation insurance."

  2. 2

    Pull the original claim and all supporting documentation for the date of service.

  3. 3

    Identify the specific data element, policy requirement, or documentation gap that triggered this adjustment.

  4. 4

    Correct the identified issue — update claim data, gather missing documentation, or verify coverage details.

  5. 5

    Resubmit as a corrected claim (frequency type 7) or file a written appeal with supporting documentation.

  6. 6

    Follow up with the payer within 10-15 business days to confirm adjudication.

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✓ Pre-action checklist — verify before contacting the payer
  1. Review the full remittance advice (ERA/EOB) for additional RARC codes that explain the denial.

  2. Verify the claim was submitted with correct patient eligibility and benefit information.

  3. Check if this denial applies to a specific line item or the entire claim.

More about PI-P1 — stats, related codes, appeal template

85%

Recovery Rate

3-7 days

Avg. Resolution

Easy

Difficulty

Rare

Frequency

Payer-Specific Notes

How major payers handle CARC P1 by specialty.

General

Confirm payer-specific policy for CARC P1 and submit corrected claim or appeal as appropriate.

Appeal Letter Template

Generic appeal template for CARC P1 denials.

Dear [Payer Name] Appeals Department, We are writing to appeal the denial of claim [CLAIM #] for patient [PATIENT NAME] (Member ID: [ID]) for services rendered on [DATE OF SERVICE]. The claim was denied with CARC P1: "State-mandated Requirement for Property and Casualty, including but not limited to, automobile, no fault and workers' compensation insurance." We believe this denial is in error for the following reasons: [INSERT CLINICAL/ADMINISTRATIVE JUSTIFICATION] We respectfully request reconsideration and payment of this claim. Sincerely, [Provider Name / Billing Contact]

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