N.J. Admin. Code § 11:3-16.8

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

Section 11:3-16.8 - Premiums, loss costs, loss and loss adjustment expense data

(a) Filers shall provide the following data regarding New Jersey premium, loss costs, loss and loss adjustment expenses. Data shall be by coverage for the latest three calendar-accident years, or fiscal-accident years, at either total limits or basic limits, where applicable. Filers shall provide all underlying calculations and justifications for any factors used:

1. Direct earned premium at present rates using either the extension of exposures or on-level factor method. Provide the rate level history;

2. Premium trend factors, including all data and judgments made, and a description of the method used to select the factors;

3. Direct earned exposures measured in car years;

4. Direct paid and/or incurred losses with applicable loss development factors and formulas used;

5. Direct paid and/or incurred defense and cost containment expense with applicable development factors and formulas used;

6. Direct paid and/or incurred adjusting and other expenses;

7. Ultimate developed losses and loss adjustment expenses;

8. Direct paid and/or incurred claim counts with applicable development factors and formulas used;

9. Ultimate developed claims counts;

10. Loss trend factors, including all data and judgments made, and a description of the method used to select the factors; and

11. Trended ultimate developed losses and loss adjustment expenses.

(b) Whenever New Jersey losses are separated into catastrophe and non-catastrophe losses, include a clear description and justification of the standard used to separate such losses. In determining a catastrophe loading, include as many years of data as available but at least 10 years. Provide an explanation if the database from which the catastrophe loading is derived differs from that on which the rate level change is based.

(c) If there is a proposed change to territorial relativities, provide territorial rate calculations including earned premiums, earned exposures, incurred losses, and the number of claims by territory for the years used to determine the territorial relativities, or for the last three years, whichever is greater.

(d) If there is a proposed change to classification differentials, provide:

1. All data used and judgments made; and

2. A description of the method used to derive the differentials.

(e) If there is a proposed change to tier relativities, provide earned premiums, earned exposures, incurred losses, and the number of claims by tier for the years used to determine the tier relativities, or for the last three years, whichever is greater.

(f) Filers shall provide the following information regarding selected credibility factors:

1. All data used and judgments made; and

2. A description of the method used to derive the factors.

(g) Filers shall account for impacts of significant changes to legislative, regulatory, social, economic, or operational factors that have an impact on loss frequency or severity, or on loss adjustment expenses.

(h) Rating organizations shall be exempt from providing any premium data required in (a) through (g) above.

(i) Where the application is by an insurer that is a member of a rating organization, the insurer may refer to the loss and loss adjustment expense data filed by the rating organization to comply with the requirements of this section.

N.J. Admin. Code § 11:3-16.8

Emergency Amendment, R.1990 d.621, effective 11/26/1990 (expired January 25, 1991).
See: 22 New Jersey Register 3790(a).
Changes to implement the Fair Automobile Insurance Reform Act of 1990, P.L. 1990, c.8.
Adopted Concurrent Proposal, R.1991 d.91, effective 1/25/1991.
See: 22 New Jersey Register 3790(a), 23 New Jersey Register 514(a).
Provision of emergency amendment, R.1990 d.621, readopted with changes effective 2/19/1991.
Amended by R.1992 d.189, effective 4/20/1992.
See: 23 New Jersey Register 3199(a), 24 New Jersey Register 1504(a).
Basic limits included at filer's option.
Amended by R.1996 d.58, effective 2/5/1996.
See: 27 New Jersey Register 3682(a), 28 New Jersey Register 855(a).
Amended by R.1998 d.128, effective 3/2/1998.
See: 29 New Jersey Register 5240(a), 30 New Jersey Register 828(a).
Rewrote the section.
Amended by R.2001 d.44, effective 2/5/2001.
See: 32 New Jersey Register 3891(a), 33 New Jersey Register 573(a).
Rewrote the section.
Amended by R.2003 d.173, effective 5/5/2003.
See: 34 New Jersey Register 3475(a), 35 New Jersey Register 1907(a).
Rewrote the section.
Amended by R.2003 d.499, effective 12/15/2003.
See: 35 New Jersey Register 3084(a), 35 New Jersey Register 5604(a).
In (e)2, deleted "up to $ 75,000" following "Personal Injury Protection ('PIP'); in (f)1, deleted the third sentence.
Repeal and New Rule, R.2005 d.176, effective 6/6/2005.
See: 36 New Jersey Register 5640(a), 37 New Jersey Register 2026(a).
Section was "Premiums, loss costs, loss and loss adjustment expense data".