N.J. Admin. Code § 11:3-16B.3

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

Section 11:3-16B.3 - Rate process for limited rate changes; insurers and rating organizations

(a) An insurer and/or rating organization, pursuant to 17:33B-31, may file for a rate change in accordance with this subchapter. The insurer shall provide the following information in support of its filing:

1. A cover letter notifying the Department of its intention to make a rate change according to the provisions of this subchapter; a statement containing the effective date of the change for new and renewal policyholders; and the name, telephone number and mailing address of the company officer familiar with the filing to whom further inquiries regarding the filing may be directed. Filers may choose to eliminate the submission of a cover letter provided that the SERFF Filing's General Information Description Section is fully completed with a clear and precise description of the filing;

2. The information in N.J.A.C. 11:3-16 Appendix Exhibit B incorporated herein by reference;

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

4. Exhibits that illustrate that the new rates are within the ranges permitted by 17:29A-36 and 29A-46.6(e). The exhibits shall include Statewide average rates, rating factors, and any underlying premium and exposure distributions necessary to the calculations;

5. The manual rating pages containing the territorial base rates by coverage to be implemented, accompanied by an explanatory memorandum showing the calculation of the new rates by coverage, using the existing rates by coverage as the starting point in the calculation;

6. Completed rating examples using the examples set forth in 11:3-45.3, which shows the proposed premium amounts;

7. The distribution of exposure - level rate impacts by five percent intervals, including descriptions of the characteristics of risks receiving the minimum and maximum impact; and

8. Data in the medium and format specified in 11:3-16B.4 (l).

(b) The filer may supplement a complete filing in response to questions from the Department about matters that require clarification or additional explanation, provided that the prompt review of the filing within the time frames set forth in this subchapter is not adversely affected.

(c) Separate insurance companies that are affiliated by a parent-subsidiary or any group relationship and that choose to submit a single filing for the group shall provide the data, either:

1. Separately for each company with a different rate level or different acceptance criteria; or

2. Combined for those companies of the group, which use a common rating system, including both base rates and acceptance criteria, or when the difference is based only on expense differences.

(d) All filings shall be submitted to the Department through the use of the NAIC electronic filing system SERFF (System for Electronic Rate and Form Filing).

(e) All filings shall be accompanied by the following certification signed by an officer of the filer: "I _______certify that the attached filing complies with all statutory and regulatory requirements and that all the information contained in it is true and accurate. I further certify that I am authorized to execute this certification on behalf of the filer."

(f) All data shall be reported on a direct basis exclusive of business ceded to reinsurers or business assumed from other companies.

N.J. Admin. Code § 11:3-16B.3

Amended by R.2003 d.500, effective 12/15/2003.
See: 35 N.J.R. 3093(a), 35 N.J.R. 5611(a).
In (a), inserted "the company's file number," following "the provisions of this subchapter;" and "for new and renewal policyholders" following "of the change" in 1 and deleted the last sentence of 4.
Amended by R.2006 d.243, effective 7/3/2006.
See: 37 N.J.R. 4162(a), 38 N.J.R. 2828(c).
In (a)5, substituted "N.J.A.C. 11:3-45" for "N.J.A.C. 11:3-19A.3" and "show" for "shows".
Amended by R.2007 d.179, effective 6/4/2007.
See: 38 N.J.R. 4161(a), 39 N.J.R. 2260(b).
Rewrote (a)1; added new (a)2; recodified former (a)2 through (a)5 as (a)3 through (a)6; rewrote (a)4; in (a)5, deleted "and" from the end; in (a)6, updated the N.J.A.C. reference and substituted a semicolon for a period at the end; and added (a)7, (a)8, (c), (d), (e), and (f).
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 (c)1 and (c)2, substituted "acceptance criteria" for "underwriting guidelines"; and in (c)2, inserted a comma after "group".
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 a period for a semicolon at the end of the first sentence and inserted the second sentence; and rewrote (a)8 and (d).