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 166-2 - Discussion Of General Rules
Section 166-2.8 - Discussion of revision procedures
Current through Register Vol. 46, No. 39, September 25, 2024
(a) At the October 5, 1982 hearing, several speakers mentioned that the proposed regulation was not specific about the procedures to be used for updating and revising the methodology. Some vagueness is inevitable since the methodology should be responsive to changes in the economic and business climate, and these cannot be dealt with until they occur. Such a change might conceivably include modification of the current method of selecting the reasonable and excess points. However, it is the department's plan to recalculate the reasonable and excess profit points, according to Professor Williams' methodology, as each additional year of data becomes available. The department departed somewhat from that methodology in the proposed regulation, and can be expected to follow a parallel procedure in the future. Substantive changes in methodology are not anticipated, although changes in the reasonable and excess figures may occur.
(b) Each year, the department will have available at its offices the updated calculations and the selected figures for the ensuing year. Technical adjustments in the formulas may also be included (for example, a more refined treatment of taxes, dividends or net worth might be developed within the general framework of this regulation).
