N.Y. Comp. Codes R. & Regs. Tit. 11 §§ 166-1.6

Current through Register Vol. 46, No. 53, December 31, 2024

Section 166-1.6 - Annual rate formulas

The formulas which shall be used to calculate the tindustrywide annual rate of return on motor vehicle insurance written in New York for the period 1974-1983 follow:

(a) RETURN ON NETWORTH _NY= (INCOME _NY/SURPLUS _NY- (.5 x INCOME _NY))

(b) INCOME _NY=

(UNDERWRITING GAIN RATIO* _NYx EARNED PREMIUM _CTY)

+ INVESTMENT GAIN _CTY

- DIVIDENDS TO POLICYHOLDERS _CTY

- FEDERAL TAX _CTY

- ADJUSTED FEDERAL TAX

(c) ADJUSTED FEDERAL TAX =

(.46 x UNDERWRITNG GAIN RATIO* _NYx EARNED PREMIUM _CTY)

- (.46) x (UNDERWRITING GAIN _CTY)

(d) SURPLUS _NY= SURPLUS _CTY

+ (1 - .46) x (UNDERWRITING GAIN RATIO* _NYx EARNED PREMIUM _CTY)

- (.46) x (UNDERWRITING GAIN _CTY)

(e) In the formulas above:

(1) NY = New York (from N.Y. Ins. Dept. Loss and Expense Ratios)

(2) CTY = Countrywide All Lines (from Best's Aggregates and Averages)

(3) .46 = Assumed Federal tax rate

* for Automobile (Motor Vehicle) Insurance only.

(f) See section 166-2.6 of this Part for discussion of this section.

N.Y. Comp. Codes R. & Regs. Tit. 11 §§ 166-1.6