New York Codes, Rules and Regulations
Title 11 - INSURANCE
Chapter V - Rates And Rating Organizations
Subchapter F - Treatment Of Excess Profits In Motor Vehicle Insurance
Part 166 - Treatment Of Excess Profits In Motor Vehicle Insurance
Subpart 166-1 - General Rules
Section 166-1.6 - Annual rate formulas

Universal Citation: 11 NY Comp Codes Rules and Regs § 166-1.6

Current through Register Vol. 46, No. 39, September 25, 2024

The formulas which shall be used to calculate the tindustrywide annual rate of return on motor vehicle insurance written in New York for the period 1974-1983 follow:

(a) RETURN ON NETWORTH NY= (INCOME NY/SURPLUS NY- (.5 x INCOME NY))

(b) INCOME NY=

(UNDERWRITING GAIN RATIO* NYx EARNED PREMIUM CTY)

+ INVESTMENT GAIN CTY

- DIVIDENDS TO POLICYHOLDERS CTY

- FEDERAL TAX CTY

- ADJUSTED FEDERAL TAX

(.46 x UNDERWRITNG GAIN RATIO* NYx EARNED PREMIUM CTY)

- (.46) x (UNDERWRITING GAIN CTY)

(d) SURPLUS NY= SURPLUS CTY

+ (1 - .46) x (UNDERWRITING GAIN RATIO* NYx EARNED PREMIUM CTY)

- (.46) x (UNDERWRITING GAIN CTY)

(e) In the formulas above:

(1) NY = New York (from N.Y. Ins. Dept. Loss and Expense Ratios)

(2) CTY = Countrywide All Lines (from Best's Aggregates and Averages)

(3) .46 = Assumed Federal tax rate

* for Automobile (Motor Vehicle) Insurance only.

(f) See section 166-2.6 of this Part for discussion of this section.

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