N.J. Admin. Code § 11:1-45.1

Current through Register Vol. 57, No. 1, January 6, 2025

Section 11:1-45.1 - Purpose and scope

(a) This subchapter sets forth the form and manner of notice to be provided to policyholders and the public when an insurer or rating organization files for a personal lines prior approval rate increase, in accordance with N.J.S.A. 52:27EE-51.

(b) This subchapter shall apply to all insurers and rating organizations that file for a consumer insurance rate increase, as required pursuant to N.J.S.A. 52:27EE-50 and 51. This subchapter shall not apply if the proposed change pertains to:

1. A prior approval rate filing made pursuant to N.J.S.A. 17:29A-46.6 or 17:36-5.3 5;

2. Rating system changes made pursuant to N.J.S.A. 17:29A-46.1 et seq.;

3. A rate filing made pursuant to any statutory change in coverage provided under a policy of private passenger automobile insurance;

4. A rate filing by the New Jersey Personal Automobile Insurance Plan; or

5. A prior approval rate filing of seven percent or less except when an insurer has filed for one or more prior approval rate filing(s) for implementation within a 12-month period and the impact of the filing(s) is a combined overall increase of more than seven percent, in which case this subchapter shall apply to the filing which causes the combined overall increase to exceed seven percent.

(c) For filings that fall within the exception set forth in (b)5 above, insurers are required to provide the Consumer Notice(s) provided in Appendix Exhibits A and B, as applicable:

1. Appendix Exhibit A is required to be provided to policyholders when a filing has been submitted that requests a rate increase in excess of seven percent.

2. Appendix Exhibit B is required to be provided to policyholders when two or more filings have been submitted and the combined requested rate level impact of the filings exceeds seven percent within a 12-month period.

3. In the event that filings submitted as set forth in (c)1 or 2 above are approved for an increase which is less than the amount requested by the filer, subsequent filings may be submitted without additional notice to policyholders provided that the combined requested rate level impact of all filings effective within a 12-month period does not exceed the amount stated in the notice(s) previously sent to policyholders.

N.J. Admin. Code § 11:1-45.1

Amended by R.2006 d.307, effective 9/5/2006.
See: 37 N.J.R. 4156(a), 38 N.J.R. 3586(a).
In (a), substituted "personal lines prior approval" for "consumer insurance" and "52:27EE-51" for "17:29A-53b"; in the introductory paragraph of (b), substituted "52:27EE-50 and 51" for "17:29A-53b"; in (b)3, deleted "or" from the end; in (b)4, substituted "; or" for a period at the end; and added (b)5.
Amended by R.2010 d.230, effective 10/18/2010.
See: 41 N.J.R. 3363(a), 42 N.J.R. 2425(a).
Rewrote (b)5.
Amended by R.2011 d.187, effective 7/5/2011.
See: 43 N.J.R. 721(a), 43 N.J.R. 1532(b).
Added (c).