Current through Register Vol. 56, No. 6, March
18, 2024
(a) Each
insurer shall submit a complete and accurate excess profit report in the format
of the exhibits appended to this subchapter, which exhibits are hereby
incorporated by reference as part of these rules, using the spreadsheet posted
on the Department's website.
(b)
The excess profit report shall contain the following information for each of
the nine most recent calendar-accident years, with an evaluation date as of
March 31 of the year in which the excess profit report is due.
1. Paid, unpaid and incurred loss;
2. Case incurred loss developed to an
ultimate basis;
3. Paid, unpaid and
incurred ALAE;
4. Case incurred
ALAE developed to an ultimate basis;
5. AIRE Allocation and investment income
received;
6. AIRE Allocation and
investment income developed to an ultimate basis;
7. AIRE Assessment; and
8. AIRE Assessment developed to an ultimate
basis.
(c) In addition
to the requirements in (b) above, each insurer shall file the following
information of the calendar-accident year ending December 31 immediately
preceding the date the excess profit report is due:
1. Premiums written;
2. Premiums earned;
3. Unallocated loss adjustment expense
incurred;
4. Other expenses
incurred, itemized separately as follows:
i.
Commissions and brokerage fees;
ii.
Taxes, licenses and fees;
iii. AIRE
charges;
iv. Other acquisition
costs and general expenses;
v. All
policyholder dividends incurred by the insurer, including any excess profit
refunded or credited to policyholders;
vi. The net of all catastrophe reinsurance
premiums incurred to unaffiliated catastrophe reinsurers and all sums paid or
owed by unaffiliated catastrophe reinsurers for losses that occurred during the
calendar-accident year; and
vii.
All expenses incurred for the services of a limited assignment distribution
center pursuant to
17:29D-1 et seq.
5. Actual investment income;
and
6. Net UCJF/net
PLIGA.
(d) The excess
profit report shall include a calculation of each of the following items in the
format of the exhibits appended to this subchapter:
1. Underwriting income for each of the seven
calendar-accident years immediately preceding the date of the profit
report;
2. Actuarial gain for each
of the seven calendar-accident years immediately preceding the date of the
profit report;
3. Actual investment
income for each of the seven calendar accident years immediately preceding the
date of the excess profit report;
4. Development adjustment for the
calendar-accident years beginning with the 11th calendar-accident year
immediately preceding the due date of the profit report and ending with the
eighth calendar-accident year immediately preceding the due date of the profit
report;
5. Total actuarial
gain;
6. Monies spent and monies
encumbered to fund reinvestments by the insurer in the New Jersey private
passenger automobile insurance market; and
7. Excess profit.
(e) An officer of the insurer shall certify
on the profit report forms that the report complies with all statutory and
regulatory requirements to the best of his or her information, knowledge and
belief. The officer shall sign his or her name and provide title, date, and
phone number.
