N.J. Admin. Code § Tit. 11, ch. 3, subch. 16, APPENDIX, exh. C

Current through Register Vol. 56, No. 23, December 2, 2024

Exhibit C

Worksheet to Determine No Limitation on Lawsuit Premium and Commission for BI and UMBI

Page 1 of 4

Insurance Group Name ____________________________________________________________________________________

Insurance Company Name _________________________________________________________________________________

Group NAIC Number _____________________________________________________________________________________

Company NAIC Number __________________________________________________________________________________

BEFORE COMPLETING THIS FORM, PLEASE READ THE INSTRUCTIONS FOLLOWING SECTION D.

Section A

Section A develops the revised Limitation on Lawsuit base rate after the rate change.

Item 1A: Current Limitation on Lawsuit base rate

State the territory number ____________________

Number of exposures _______________________

Percent of Statewide total ____________________

Item 2A: Limitation on Lawsuit rate change, expressed as a multiplicative factor .______________

Item 3A: Revised Limitation on Lawsuit base rate (Item 1A multiplied by Item 2A)__________________________

NOTE: Item 3A is the new Limitation on Lawsuit base rate after the rate change.

Section B

The dollars of commission for the Limitation on Lawsuit base rate and the No Limitation on Lawsuit base rate are to be identical after the rate change. Section B develops the dollars of commission which can be included in the rate. The insurer may pay a higher commission. However, the portion of the commission above the amount stated in Item 2B is not to be included in the rate and is not to be charged to the policyholder.

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Item 1B: Current filed and approved commission rate for the Limitation on

Lawsuit base rate, expressed as a decimal and rounded to the third decimal

place _________________________________________________

State the relevant DOBI filing number: ______________________

Item 2B: Dollars of commission for the increased/decreased Limitation on Lawsuit base rate (Item 3A multiplied by Item 1B) ___________________________________________

NOTE: Item 2B is the dollars of commission for the Limitation on Lawsuit base rate after the rate change, and it is also the dollars of commission for the No Limitation on Lawsuit base rate after the rate increase/decrease.

Section C

Section C develops the No Limitation on Lawsuit rate change.

COMPLETE ITEMS 1C, 2C, 3C, AND 4C ONLY FOR A RATE INCREASE, BUT NOT FOR A RATE DECREASE.

Item 1C: Item 2A minus 1.000 _____

Item 2C: Item 1C times 2.000 _____

Item 3C: Item 2C plus 1.000 _____

Item 4C: No Limitation on Lawsuit rate increase expressed as a

multiplicative factor _____

NOTE: Item 4C is the amount the insurer selects as the No Limitation on

Lawsuit rate increase.

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COMPLETE ITEMS 5C, 6C, 7C, AND 8C ONLY FOR A RATE DECREASE, BUT NOT FOR A RATE INCREASE.

Item 5C: 1.000 minus Item 2A _____

Item 6C: Item 5C divided by 2.000 _____

Item 7C: 1.000 minus Item 6C _____

Item 8C: No Limitation on Lawsuit rate decrease expressed as a multiplicative factor _____

NOTE: Item 8C is the amount the insurer selects as the No Limitation on Lawsuit rate decrease.

Section D

Item 5D of Section D is the No Limitation on Lawsuit base rate with the rate increase/decrease.

Item 1D: Current No Limitation on Lawsuit base rate _____

Item 2D: Filed and approved dollars of commission for the current No Limitation on Lawsuit base rate _____

State the relevant DOBI filing Number: _____

Item 3D: Current No Limitation on Lawsuit base rate excluding commission (Item 1D minus Item 2D) _____

Item 4D: Increased/decreased No Limitation on Lawsuit base rate, excluding commissions (Items 3D multiplied by Item 4C, or Item 3D multiplied by Item

8C, as appropriate.)_____

Item 5D: Increased/decreased No Limitation on Lawsuit base rate, including commissions (Items 2B plus Item 4D)

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Instructions:

1. Data are for base rates for the territory with the largest number of the filer's exposures. Following Item 1A state the number of the territory in question; the number of exposures in that territory; and the portion of the statewide exposures for the filer in that territory.

2. File one worksheet for BI and one for UMBI.

3. For combined single limits, fill out the worksheets using the BI and UMBI portions of the rate.

4. Item 2A is to be expressed as a decimal and rounded to the third digit. For example, if the rate change is an increase of 2 percent, Item 2A is 1.020. As another example, if the rate change is a decrease of 3.2 percent, then Item 2A is 0.968.

5. The commission rate in Item 1B to be expressed as a decimal and rounded to the third digit. For example, if the commission rate is 15.3 percent, Item 1B is 0.153. As another example, if the commission rate is 19 percent, Item 1B is 0.190.

6. The commission allowable in the No Limitation on Lawsuit base rate is Item 2B. The insurer may pay a higher commission. However, the portion of the commission above the amount stated in Item 2B is not to be included in the rate and is not to be charged to the policyholder.

7. Following Items 1B and 2D, provide the DOBI filing number of the filing in which the commission rate was approved.

N.J. Admin. Code Tit. 11, ch. 3, subch. 16, APPENDIX, exh. C