New Jersey Administrative Code
Title 11 - INSURANCE
Chapter 3 - AUTOMOBILE INSURANCE
Subchapter 20 - REPORTING FINANCIAL DISCLOSURE AND EXCESS PROFITS
Section 11:3-20.9 - Excess profit, extraordinary loss, and reinvestment into New Jersey carry forwards

Universal Citation: NJ Admin Code 11:3-20.9

Current through Register Vol. 56, No. 6, March 18, 2024

(a) In the event an excess profit is returned by an insurer in accordance with this subchapter and subsequent reports demonstrate and additional excess profits are indicated, an excess profit carry forward shall be established.

(b) In the event an extraordinary loss has been incurred by an insurer and subsequent excess profit reports demonstrate that an excess profit is indicated, an extraordinary loss carry forward shall be established.

(c) In the event that an excess profit is indicated for an insurer, and any prior excess profit carry forward and/or extraordinary loss carry forward has either not been established or has been exhausted, and a plan for reinvestment into New Jersey has been filed by the insurer, a reinvestment carry forward shall be established.

(d) Excess profit, extraordinary loss, and reinvestment carry forwards shall be applied by such insurer as an allowance against future determinations of excess profits. The allowance shall only be applied in a filing year that generates an excess profit, and the application of such allowance shall not exceed the amount of excess profit generated in the filing year. In such filing year, the insurer shall assign the carry forward or any portion thereof to the latest seven AYs of that filing. Once a carry forward is assigned to an AY, it shall remain with that AY until it is no longer displayed in subsequent filings. Once a carry forward or a portion thereof is assigned to a particular AY, that portion of the carry forward amount is exhausted and shall not be applied as an allowance against any other AY. The carry forward may be used until such allowance is exhausted or the end of 15 years from the date the excess profit was paid, extraordinary loss was incurred, or reinvestment is committed, whichever occurs first.

Disclaimer: These regulations may not be the most recent version. New Jersey may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.