N.J. Admin. Code § 11:3-19A.4

Current through Register Vol. 56, No. 9, May 6, 2024

Section 11:3-19A.4 - Filing requirements for tier rating plans

(a) An insurer seeking to establish or to modify a tier rating plan shall file with the Commissioner the following items:

1. A complete set of tier placement criteria containing the standards for each tier and the rating differentials between the tiers;

2. A narrative description of the plan, which shall include:

i. The percentage difference between tier rate levels;

ii. The insurer's plan for determining placement and renewal of an insured at a tier level; and

iii. If the plan is submitted by a group of affiliated companies, the identity of all individual insurance companies in the group that transact private passenger automobile insurance business in New Jersey and the tiers to be used by each;

3. Rating examples as set forth in the Appendix to this subchapter, incorporated herein by reference. Where a driver qualifies for more than one rating tier; the insurer may provide the premium for different tiers together with the factors that might result in the placement of the insured in a lower tier; and

4. No later than 10 days prior to the effective date of the plan, copies of manual rate pages for each rate level together with rating examples and a copy of the notice explaining the insurer's tier rating system pursuant to 11:3-19A.3(e).

(b) In addition to the items contained in (a) above, insurers initially substituting a tier rating plan for a standard/nonstandard rating plan pursuant to N.J.A.C. 11:3-19, and insurers initially adopting a rating organization's loss cost tier rating plan, shall also file the following:

1. The expected distribution by tier of current exposures when placed within each tier and the rate effect, including the maximum and minimum individual rate change for each tier; and

2. Calculations demonstrating that the initial rating plan is revenue neutral by coverage in accordance with 17:29A-46.4.

(c) When a filer's rating system contains more than one tier, a percentage rate differential shall be applied to the base rates contained in the initial filed and approved tier rating plan.

N.J. Admin. Code § 11:3-19A.4

Amended by R.2008 d.380, effective 12/15/2008 (operative January 1, 2009).
See: 40 N.J.R. 3572(a), 40 N.J.R. 6970(b).
In (a)1, substituted "tier placement criteria" for "underwriting rules".