New York Codes, Rules and Regulations
Title 11 - INSURANCE
Chapter IV - Financial Condition Of Insurer and Reports to Superintendent
Subchapter C - Fire, Marine, Casualty And Surety Insurers
Part 107 - Composition Of, And Allocation To, Expense Groups
Section 107.4 - Allocation to expense groups
Current through Register Vol. 46, No. 12, March 20, 2024
(a) Expenses shall be allocated to expense groups as follows:
|
Expenses to be allocated to expense groups |
Allocation to expense groups |
| Claim adjustment services: | Loss adjustment expenses |
| Commission and brokerage | Acquisition, field supervision and collection expenses |
| Allowances to managers and agents | See commission and allowances (section 107.3[c][2] of this Part) |
| Advertising | Acquisition, field supervision and collection expenses |
| Boards, bureaus and associations | General expenses |
| Surveys and underwriting reports | General expenses |
| Audit of assureds' records | General expenses |
| Salaries and related items | See special instructions relating to the allocation of salaries and other expenses (Part 109 of this Title) |
| Employee relations and welfare | Overhead on salaries |
| Insurance | Overhead on salaries |
| Pensions | Overhead on salaries |
| Directors' fees | Overhead on salaries |
| Travel and travel items | Special studies |
| Rent and rent items | Overhead on salaries |
| Equipment | Overhead on salaries |
| Printing and stationery | Overhead on salaries |
| Postage, telephone and telegraph, exchange and express | Overhead on salaries |
| Legal and auditing | Special studies |
| Taxes, licenses and fees (except payroll taxes) | Taxes |
| Real estate expenses | Investment expenses |
| Income from special services | Special studies |
| Miscellaneous | Special studies |
(b) Definitions.
For definitions of the terms overhead on salaries and special studies, see section 106.3, supra.
(c) Other bases permitted or prescribed.
For those operating expense classifications permitting the basis "overhead on salaries," any other basis of allocation may be adopted which yields more accurate results. The basis "overhead on salaries" shall not be used if clearly inappropriate.
(d) Other instructions applicable.
In making any allocations to expense groups, companies shall observe the general instructions regarding allocation bases (see section 109.3 of this Title).
(e) Records required.
