N.J. Admin. Code § 11:3-16.6

Current through Register Vol. 56, No. 17, September 3, 2024

Section 11:3-16.6 - Filings for rates requiring prior approval

(a) Any filer that desires to modify its rates or rating systems in a manner other than that provided at N.J.S.A. 17:29A-46.6shall provide the following standard information in support of its application:

1. A cover letter notifying the Department of its intention to modify its rating system in a manner that requires prior approval, pursuant to N.J.S.A. 17:29A-14; a statement describing the proposed changes, which shall include the proposed effective date of the change, and the name, telephone number and mailing address of the company officer familiar with the filing, to whom inquiries about the filing may be directed. Filers may choose to eliminate the submission of a cover letter provided that the SERFF Filing's General Information Filing Description Section is fully completed with a clear and precise description of the filing;

2. A checklist that sets forth the information in Exhibit A in the Appendix incorporated herein by reference;

3. Exhibit B in the Appendix incorporated herein by reference;

4. A narrative overview that sets forth the contents of the filing, and explains the reasons and procedures used to derive the rate change requested;

5. Premiums, losses and loss adjustment expenses data, as set forth in N.J.A.C. 11:3-16.8;

6. Expense data, as set forth in N.J.A.C. 11:3-16.9. Rating organizations are exempt from this requirement;

7. Profit and contingency provision, as set forth in N.J.A.C. 11:3-16.10. Rating organizations are exempt from this requirement;

8. Proposed rates or loss costs for each territory and coverage together with their derivation; 9. Calculations showing that the proposed rates are in compliance with N.J.S.A. 17:29A-36;

10. Data described at N.J.A.C. 11:3-16.8, 16.9, and 16.10 shall be submitted through the use of the NAIC electronic filing system SERFF (System for Electronic Rate and Form Filing). The information shall be provided in a Microsoft Excel or compatible spreadsheet. All calculated values shall be given as a formula in the spreadsheet; and

11. Proposed manual rate and/or rule pages.

(b) All rate filers shall submit data in support of their application for approval of their proposed rating system based on their own loss experience to the extent it is credible (N.J.A.C. 11:3-16.8), their own expense and profit provisions (N.J.A.C. 11:3-16.9) except rating organizations, and their own profit and contingency provision (N.J.A.C. 11:3-16.10). If the application is not supported by the required data, filers shall submit other appropriate documentation as necessary in addition to the required data. Those filers who refer, without deviation, to the loss experience data of a rating organization shall not be required to file their own loss experience data.

(c) Upon approval, insurers shall file manual rating pages on or before the effective date of the rates. In the case of rating organizations, the manual rating page shall reflect the loss cost information.

(d) In those cases where, due to their small size and/or lack of historical experience, filers are unable to completely fulfill all of the data submission requirements set forth in N.J.A.C. 11:3-16.8, 16.9 and 16.10, such filers shall be required to submit as much required information as they are able to supply, and each filing shall be reviewed accordingly.

(e) Filers shall provide any additional rate filing information specifically requested by the Department that may be necessary to constitute a proper rate filing.

N.J. Admin. Code § 11:3-16.6

Emergency Amendment, R.1990 d.621, effective 11/26/1990 (expired January 25, 1991).
See: 22 N.J.R. 3790(a).
Provisions to implement the Fair Automobile Insurance Reform Act of 1990, P.L. 1990, c.8.
Adopted Concurrent Proposal, R.1991 d.91, effective 1/25/1991.
See: 22 N.J.R. 3790(a), 23 N.J.R. 514(a).
Provision of emergency amendment, R.1990 d.621, readopted without change.
Amended by R.1996 d.58, effective 2/5/1996.
See: 27 N.J.R. 3682(a), 28 N.J.R. 855(a).
Amended (a)1 and 5, and added (a)6.
In (a)1 eliminated the exclusion of the policy constant and RMEC from the grand total.
Amended by R.1998 d.128, effective 3/2/1998.
See: 29 N.J.R. 5240(a), 30 N.J.R. 828(a).
In (a), inserted a reference to loss costs in 4, added an exception at the beginning of 5, inserted a reference to loss cost calculations in 6, and changed N.J.A.C. references and deleted a reference to 5.25 inch 360 KB disks in 7; in (b), inserted an exception relating to rating organizations and inserted a reference to loss cost calculations in the first sentence, and added a second sentence; and rewrote (c).
Amended by R.2003 d.173, effective 5/5/2003.
See: 34 N.J.R. 3475(a), 35 N.J.R. 1907(a).
Rewrote the section.
Amended by R.2005 d.176, effective 6/6/2005.
See: 36 N.J.R. 5640(a), 37 N.J.R. 2026(a).
Rewrote the section.
Amended by R.2007 d.91, effective 4/2/2007.
See: 38 N.J.R. 4976(b), 39 N.J.R. 1313(a).
In (a)1, inserted the last sentence.
Amended by R.2009 d.190, effective 6/15/2009.
See: 41 N.J.R. 365(a), 41 N.J.R. 2486(a).
In (a)1, substituted "inquiries" for "inquires" and substituted "SERFF Filing's General Information Filing Description Section" for " 'Filing Description' of the NAIC Uniform Property and Casualty Transmittal Document referenced in N.J.A.C. 11:3-16.3(d)"; and rewrote (a)10.
Amended by R.2014 d.004, effective 1/6/2014.
See: 45 N.J.R. 1886(a), 46 N.J.R. 86(a).
In (a)9, deleted "and" from the end; in (a)10, inserted a comma following "16.9", and substituted "; and" for a period at the end; and added (a)11.
Notice of readoption with technical change, effective 1/3/2022.
See: 54 N.J.R. 67(b).