CO-162 Denial Code (Deactivated): State-Mandated P&C Rule
CO-162 meant a property and casualty payer applied a state-mandated requirement, with a remark code giving the specific rule. X12 deactivated it and its notes say to use code P1 instead.
X12 deactivated CARC162 on July 1, 2014. Payers should no longer use it on new remittances, but it can still appear on older ERAs, corrected claims, and appeals.
Quick facts
- Code
- CO-162 (CARC 162)
- Status
- Deactivated StoppedJuly 1, 2014 (in use since February 29, 2004).
- Code set
- Claim Adjustment Reason Codes (CARC)
- Group codes
-
- CO (Contractual Obligation): The adjustment was driven by state property and casualty rules and was generally not billable to the patient.
- Official description
State-mandated Requirement for Property and Casualty, see Claim Payment Remarks Code for specific explanation.
X12 Claim Adjustment Reason Codes, retrieved September 25, 2026- Last verified
- against the official X12 list.
What CO-162 meant
CARC 162 was reserved for property and casualty insurers, such as auto and liability carriers. It told the provider that the payment was affected by a requirement set by state law, and it pointed to the claim payment remark code for the particular rule. The code itself was a pointer, not an explanation.
What replaced it
X12’s note is “Use code P1.” When the P-series was created to hold property and casualty codes together, this code’s text moved to CO-P1, which still relies on remark codes for detail. Related P-series codes include CO-P13 for workers’ compensation jurisdictional rules and CO-P21 for auto medical payments and personal injury protection denials.
If you still see CO-162
Look for it in older auto or liability claim files. Current remittances should carry P1. Either way, the remark code is what you need: it names the state requirement. Contact the adjuster to confirm what is needed, such as a specific form, fee schedule, or treatment limit, and resubmit or request reconsideration if you can meet it.
Related and easily confused codes
- CO-P1 (State-mandated Requirement for Property and Casualty, see Claim Payment Remarks Code for specific explanation.): Named replacement: state-mandated requirement for property and casualty.
- CO-P13 (Payment reduced or denied based on workers' compensation jurisdictional regulations or payment policies, use only if no other code is applicable.): Reduced or denied under workers' compensation jurisdictional regulations or payment policies.
- CO-P21 (Payment denied based on the Medical Payments Coverage (MPC) and/or Personal Injury Protection (PIP)): Denied under Medical Payments Coverage or Personal Injury Protection jurisdictional rules.
CO-162 FAQ
Does CO-162 apply to health insurance claims?
No. It was a property and casualty code, meaning auto, liability, and similar insurers. Workers' compensation had its own codes.
How do I learn which state rule was applied?
Read the remark code on the remittance and, if needed, ask the adjuster which state statute or regulation they relied on.