Current through Register Vol. 56, No. 18, September 16, 2024
(a) In order for
an insurer to incorporate a rating organization's or advisory organization's
approved prospective loss costs to establish its own rates, an insurer shall:
1. Be a participating insurer in the rating
organization; and
2. File its loss
costs multiplier using the Filing Adoption Form (as set forth in Appendix A to
this subchapter and incorporated herein by reference). An insurer's loss costs
multiplier shall be filed and become effective in accordance with
17:29A-1 et seq. and N.J.A.C.
11:1-2. An insurer's final rates shall be a combination of the approved
prospective loss costs and the approved loss costs multiplier.
i. An insurer may file modifications to the
rating organization's approved prospective loss costs filing based on its own
anticipated experience by using the Filing Adoption Form. Supporting
documentation shall be filed for any modification (upwards or downwards) to the
rating organization's prospective loss cost filings.
ii. An insurer's approved loss costs
multiplier shall remain in effect until the insurer withdraws the multiplier or
until a revised Filing Adoption Form is filed by the insurer and approved by
the Department.
(b) An insurer may vary expense loads by
individual lines, sublines or classifications of insurance. An insurer may use
variable or fixed expense loads or a combination of these to establish its
expense loadings by using the Filing Adoption Form, items 17-21.
1. An insurer shall provide documentation to
support its profit loading, which shall demonstrate how the insurer reflects
investment income.
2. An insurer
shall provide the overall dollar impact and the number of New Jersey policies
affected by the filing.
(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
17:29A-14 or until the insurer
revises its rates, either upon approval of an independent filing or upon
approval of a Filing Adoption Form.
(d) Once an insurer has an approved loss
costs multiplier on file with the Department, such multiplier shall be deemed
to be automatically applicable to subsequent rating organization or advisory
organization prospective loss costs filings, subject to the following
requirements:
1. An insurer intending to use
a subsequent revision of approved prospective loss costs as of the effective
date of the rating organization or advisory organization shall file with the
Department new rate pages to reflect the revision only if final printed rate
pages were previously submitted;
2.
An insurer intending to use a subsequent revision of approved prospective loss
costs but with a different effective date, shall file with the Department its
proposed effective date prior to the effective date of the rating
organization's or advisory organization's prospective loss costs;
3. An insurer intending to use a subsequent
revision of approved prospective loss costs and to change its loss costs
multiplier shall file a revised Filing Adoption Form for approval in accordance
with 17:29A-1 et seq. and N.J.A.C.
11:1-2 prior to the effective date of the rating organization's or advisory
organization's prospective loss costs filing; and
4. An insurer not intending to use a
subsequent revision of approved prospective loss costs, shall notify the
Department prior to the effective date of the rating organization's or advisory
organization's prospective loss costs filing. The insurer shall file a
Non-Adoption of Prospective Loss Cost Form (as set forth in Appendix B to this
subchapter and incorporated herein by reference) with the Department.
(e) When filing to adopt a rating
organization's or advisory organization's prospective loss cost filing, the
insurer shall also file with the Department, within 30 days of the effective
date of the insurer's rates, either:
1. A
final printed manual page indicating the loss cost multiplier 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.
(f) Insurers shall provide consumer
notification of the insurance rate increase in accordance with N.J.A.C.
11:1-45, Notification to Policyholders of Consumer Insurance Rate
Increases.
