N.J. Admin. Code § 11:13-8.4

Current through Register Vol. 56, No. 24, December 18, 2024

Section 11:13-8.4 - Prospective loss costs filing requirements for insurers

(a) In order for an insurer to incorporate a rating organization's or advisory organization's filed prospective loss costs to establish its own rates, an insurer shall:

1. Be a member/subscriber insurer in the rating organization or advisory organization; and

2. File its loss costs multiplier using the Reference Filing Adoption Form (as set forth in Appendix A to this subchapter and incorporated herein by reference). An insurer's final rates shall be a combination of the prospective loss costs and the loss costs multiplier set forth in its filed Reference Filing Adoption Form.

i. An insurer may file modifications to the rating organization's or advisory organization's prospective loss costs filing based on its own anticipated experience by using the Reference Filing Adoption Form. Supporting documentation shall be filed for any modification (upwards or downwards) to the rating organization's or advisory organization's prospective loss costs filings.

ii. An insurer's filed loss costs multiplier shall remain in effect until the insurer withdraws the multiplier or files a revised Reference Filing Adoption Form.

(b) Insurers may vary expense loads by individual lines, sublines or classifications of insurance. Insurers may use variable or fixed expense loads or a combination of these to establish their expense loadings.

1. An insurer's loss cost multiplier based on its expenses plus any profit provision shall not include the surtax or the Property-Liability Insurance Guaranty Association's assessments on private passenger automobiles pursuant to N.J.S.A. 17:33B-49.

(c) Any participating insurer of a rating organization or advisory organization shall continue to use all rates and deviations currently in effect for its use until disapproved pursuant to N.J.S.A. 17:29AA-13, or until the insurer makes a filing to change its rates, either by making an independent filing or by submitting a Reference Filing Adoption Form.

(d) Once an insurer has filed a loss costs multiplier with the Department, such multiplier shall be deemed to be automatically applicable to subsequent rating organizations or advisory organizations prospective loss costs filings, subject to the following requirements:

1. An insurer which intends to use a subsequent revision of prospective loss cost and effective date as filed by the rating organization or advisory organization shall not file anything;

2. An insurer which intends to use prospective loss costs as filed but with a different effective date shall file with the Department its proposed effective date not more than 30 days after the effective date of the rating organization's or advisory organization's prospective loss costs;

3. An insurer which intends to use a subsequent revision of the prospective loss costs to change its loss costs multiplier, shall file a revised Reference Filing Adoption Form not more than 30 days after the effective date of the rating organization's or advisory organization's prospective loss costs reference filing; and

4. An insurer which does not intend to use a subsequent revision of the prospective loss costs shall notify the Department not more than 30 days after the effective date of the rating organization's or advisory organization's prospective loss costs reference filing. The insurer shall file a Non Adoption of Prospective Lost Cost Form (as set forth in Appendix and incorporated herein by reference) with the Department.

(e) An insurer which has failed to adopt a rating organization's or advisory organization's prospective loss cost shall file with the Department, within 30 days of the effective date of the insurer's rates.

1. A final printed manual page indicating the loss cost modification to be applied to the rating organization's or advisory organization's prospective loss costs, including its effective date; or

2. Final printed manual pages indicating the final rates developed by application of the loss cost multiplier to the rating organization's or advisory organization's loss costs, including the effective date.

N.J. Admin. Code § 11:13-8.4

Amended by R.2003 d.21, effective 1/6/2003.
See: 34 New Jersey Register 2947(a), 35 New Jersey Register 252(a).
Inserted "or advisory organization" following "rating organization" throughout.

Amended by 54 N.J.R. 907(b), effective 5/16/2022