Current through Register Vol. 56, No. 6,
March 18, 2024
(a) In
order for an insurer to incorporate a rating organization's or advisory
organization's filed prospective loss costs to establish its own rates, an
insurer shall:
1. Be a member/subscriber
insurer in the rating organization or advisory organization; and
2. File its loss costs multiplier using the
Reference Filing Adoption Form (as set forth in Appendix A to this subchapter
and incorporated herein by reference). An insurer's final rates shall be a
combination of the prospective loss costs and the loss costs multiplier set
forth in its filed Reference Filing Adoption Form.
i. An insurer may file modifications to the
rating organization's or advisory organization's prospective loss costs filing
based on its own anticipated experience by using the Reference Filing Adoption
Form. Supporting documentation shall be filed for any modification (upwards or
downwards) to the rating organization's or advisory organization's prospective
loss costs filings.
ii. An
insurer's filed loss costs multiplier shall remain in effect until the insurer
withdraws the multiplier or files a revised Reference Filing Adoption
Form.
(b)
Insurers may vary expense loads by individual lines, sublines or
classifications of insurance. Insurers may use variable or fixed expense loads
or a combination of these to establish their expense loadings.
1. An insurer's loss cost multiplier based on
its expenses plus any profit provision shall not include the surtax or the
Property-Liability Insurance Guaranty Association's assessments on private
passenger automobiles pursuant to N.J.S.A. 17:33B-49.
(c) Any participating insurer of a rating
organization or advisory organization shall continue to use all rates and
deviations currently in effect for its use until disapproved pursuant to
N.J.S.A. 17:29AA-13, or until the insurer makes a filing to change its rates,
either by making an independent filing or by submitting a Reference Filing
Adoption Form.
(d) Once an insurer
has filed a loss costs multiplier with the Department, such multiplier shall be
deemed to be automatically applicable to subsequent rating organizations or
advisory organizations prospective loss costs filings, subject to the following
requirements:
1. An insurer which intends to
use a subsequent revision of prospective loss cost and effective date as filed
by the rating organization or advisory organization shall not file
anything;
2. An insurer which
intends to use prospective loss costs as filed but with a different effective
date shall file with the Department its proposed effective date not more than
30 days after the effective date of the rating organization's or advisory
organization's prospective loss costs;
3. An insurer which intends to use a
subsequent revision of the prospective loss costs to change its loss costs
multiplier, shall file a revised Reference Filing Adoption Form not more than
30 days after the effective date of the rating organization's or advisory
organization's prospective loss costs reference filing; and
4. An insurer which does not intend to use a
subsequent revision of the prospective loss costs shall notify the Department
not more than 30 days after the effective date of the rating organization's or
advisory organization's prospective loss costs reference filing. The insurer
shall file a Non Adoption of Prospective Lost Cost Form (as set forth in
Appendix and incorporated herein by reference) with the Department.
(e) An insurer which has failed to
adopt a rating organization's or advisory organization's prospective loss cost
shall file with the Department, within 30 days of the effective date of the
insurer's rates.
1. A final printed manual
page indicating the loss cost modification to be applied to the rating
organization's or advisory organization's prospective loss costs, including its
effective date; or
2. Final printed
manual pages indicating the final rates developed by application of the loss
cost multiplier to the rating organization's or advisory organization's loss
costs, including the effective date.
