N.Y. Comp. Codes R. & Regs. tit. 11 § 107.4

Current through Register Vol. 46, No. 50, December 11, 2024

Section 107.4 - Allocation to expense groups

(a) Expenses shall be allocated to expense groups as follows:

Expenses to be allocated to expense groups	Allocation to expense groups
Claim adjustment services:	Loss adjustment expenses
Commission and brokerage	Acquisition, field supervision and collection expenses
Allowances to managers and agents	See commission and allowances (section 107.3[c][2] of this Part)
Advertising	Acquisition, field supervision and collection expenses
Boards, bureaus and associations	General expenses
Surveys and underwriting reports	General expenses
Audit of assureds' records	General expenses
Salaries and related items	See special instructions relating to the allocation of salaries and other expenses (Part 109 of this Title)
Employee relations and welfare	Overhead on salaries
Insurance	Overhead on salaries
Pensions	Overhead on salaries
Directors' fees	Overhead on salaries
Travel and travel items	Special studies
Rent and rent items	Overhead on salaries
Equipment	Overhead on salaries
Printing and stationery	Overhead on salaries
Postage, telephone and telegraph, exchange and express	Overhead on salaries
Legal and auditing	Special studies
Taxes, licenses and fees (except payroll taxes)	Taxes
Real estate expenses	Investment expenses
Income from special services	Special studies
Miscellaneous	Special studies

(b)Definitions.

For definitions of the terms overhead on salaries and special studies, see section 106.3, supra.

(c)Other bases permitted or prescribed.

For those operating expense classifications permitting the basis "overhead on salaries," any other basis of allocation may be adopted which yields more accurate results. The basis "overhead on salaries" shall not be used if clearly inappropriate.

(d)Other instructions applicable.

In making any allocations to expense groups, companies shall observe the general instructions regarding allocation bases (see section 109.3 of this Title).

(e)Records required.

(1) The methods followed in allocating to expense groups shall be described, kept and supported as set forth under "detail of allocation bases" (see section 109.4[g] of this Title).

(2) The effects of the application to each operating expense classification of all bases of allocation shall be shown on records kept in clear and legible form. Such records shall be readily available for examination.

N.Y. Comp. Codes R. & Regs. Tit. 11 § 107.4