N.J. Admin. Code § 11:3-16A.4

Current through Register Vol. 56, No. 23, December 2, 2024

Section 11:3-16A.4 - Standards for establishment of territories

(a) A territory shall be a geographic area of the State defined by contiguous zip codes, that follow municipal boundaries as closely as possible. If a zip code crosses a municipal boundary that forms a territorial boundary, the filer shall place the zip code entirely in one territory. Filers shall report statistical data by zip code.

(b) Each territory shall border on at least two other territories, or one territory and a State border.

(c) In establishing the common territory map, the Commission shall use data representing the largest available compilation from insurers. A rating organization that files a territory map shall use the combined data of its subscribers. An insurer filing its own territory map shall use its own data, or other relevant industry data that may be available for its use, or any combination of the two. The territory map filing shall include an explanation of any adjustments or weighting of the raw data used.

(d) In order to create an equable distribution of exposures throughout the State, each territory shall be comprised of no less than 20,000 exposures for one year. The exposure count shall be based on data used by the Commission to determine the common territory map. The maximum number of territories in any territorial map shall not exceed 50 territories.

(e) No territorial rating plan shall result in territories that are arbitrary, unfairly discriminatory, or created in a manner that is primarily for marketing purposes rather than measuring relativity of exposure to probable loss, or created in a manner that can be used to avoid the filer's obligations under 17:33B-15.

N.J. Admin. Code § 11:3-16A.4

Amended by R.2008 d.31, effective 2/4/2008.
See: 39 N.J.R. 13(a), 40 N.J.R. 786(a).
Added (f).
Amended by R.2010 d.251, effective 11/1/2010.
See: 42 N.J.R. 1469(a), 42 N.J.R. 2632(a).
Deleted (f).