N.J. Admin. Code § 11:3-16B.5

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

Section 11:3-16B.5 - Limitation on filer's rate request

(a) If the overall indicated change as determined in 11:3-16B.4 is an increase of seven percent or more, the filer shall request an overall increase of no more than seven percent.

(b) If the overall indicated change as determined by 11:3-16B.4 is less than seven percent, the filer shall request no more than the overall rate change that is indicated.

(c) Filers shall be permitted to seek base rate increases of up to 15 percent provided:

1. The increases are indicated by territory and coverage;

2. The overall increase for any single coverage does not exceed 10 percent;

3. The overall increase for all coverages for all policyholders combined does not exceed seven percent; and

4. In the event that (f) below applies, the percentage limits in this section shall be doubled.

(d) No individual policy shall experience a rate increase in excess of 15 percent within a 12-month period as a result of any filings made pursuant to this subchapter, inclusive of all filed changes to rates and rating factors. In the event that (f) below applies, the percentage limit of 15 percent shall be doubled.

(e) A filer may not have more than one rate-change request pursuant to this subchapter approved in any 12-month period; however, this limitation shall not apply to a filing for an overall reduction in rates, or to a filing reflecting a statutory change in coverage.

(f) An insurer not using this limited rate change process in a 12-month period may elect to file a proposed alteration to its rating system that will result in a rate change of not more than double the increase permitted pursuant to (a) above, if the filing complies with the requirements of 17:29A-46.6 and this subchapter, and a prior filing for a proposed alteration as referenced in this subsection has not been approved and effective more than once within a 24-month period.

N.J. Admin. Code § 11:3-16B.5

Amended by R.2003 d.500, effective 12/15/2003.
See: 35 N.J.R. 3093(a), 35 N.J.R. 5611(a).
Raised the percentages from there to seven throughout; in (c), raised the single coverage percent from five to ten percent; rewrote (d) and added (e).
Amended by R.2007 d.179, effective 6/4/2007.
See: 38 N.J.R. 4161(a), 39 N.J.R. 2260(b).
Rewrote (c); inserted new (d); and recodified former (d) through (e) as (e) through (f).