N.J. Admin. Code § 11:3-20.5

Current through Register Vol. 56, No. 21, November 4, 2024

Section 11:3-20.5 - Excess profit report

(a) Each insurer shall submit a complete and accurate excess profit report in the format of the exhibits appended to this subchapter, which exhibits are hereby incorporated by reference as part of these rules, using the spreadsheet posted on the Department's website.

(b) The excess profit report shall contain the following information for each of the nine most recent calendar-accident years, with an evaluation date as of March 31 of the year in which the excess profit report is due.

1. Paid, unpaid and incurred loss;

2. Case incurred loss developed to an ultimate basis;

3. Paid, unpaid and incurred ALAE;

4. Case incurred ALAE developed to an ultimate basis;

5. AIRE Allocation and investment income received;

6. AIRE Allocation and investment income developed to an ultimate basis;

7. AIRE Assessment; and

8. AIRE Assessment developed to an ultimate basis.

(c) In addition to the requirements in (b) above, each insurer shall file the following information of the calendar-accident year ending December 31 immediately preceding the date the excess profit report is due:

1. Premiums written;

2. Premiums earned;

3. Unallocated loss adjustment expense incurred;

4. Other expenses incurred, itemized separately as follows:

i. Commissions and brokerage fees;

ii. Taxes, licenses and fees;

iii. AIRE charges;

iv. Other acquisition costs and general expenses;

v. All policyholder dividends incurred by the insurer, including any excess profit refunded or credited to policyholders;

vi. The net of all catastrophe reinsurance premiums incurred to unaffiliated catastrophe reinsurers and all sums paid or owed by unaffiliated catastrophe reinsurers for losses that occurred during the calendar-accident year; and

vii. All expenses incurred for the services of a limited assignment distribution center pursuant to 17:29D-1 et seq.

5. Actual investment income; and

6. Net UCJF/net PLIGA.

(d) The excess profit report shall include a calculation of each of the following items in the format of the exhibits appended to this subchapter:

1. Underwriting income for each of the seven calendar-accident years immediately preceding the date of the profit report;

2. Actuarial gain for each of the seven calendar-accident years immediately preceding the date of the profit report;

3. Actual investment income for each of the seven calendar accident years immediately preceding the date of the excess profit report;

4. Development adjustment for the calendar-accident years beginning with the 11th calendar-accident year immediately preceding the due date of the profit report and ending with the eighth calendar-accident year immediately preceding the due date of the profit report;

5. Total actuarial gain;

6. Monies spent and monies encumbered to fund reinvestments by the insurer in the New Jersey private passenger automobile insurance market; and

7. Excess profit.

(e) An officer of the insurer shall certify on the profit report forms that the report complies with all statutory and regulatory requirements to the best of his or her information, knowledge and belief. The officer shall sign his or her name and provide title, date, and phone number.

N.J. Admin. Code § 11:3-20.5

Amended by R.1992 d.254, effective 6/15/1992.
See: 24 N.J.R. 529(a), 24 N.J.R. 2264(a).
Text added at (e) regarding Excess Profits Report expenses.
Amended by R.1994 d.24, effective 1/3/1994.
See: 25 N.J.R. 1829(a), 26 N.J.R. 241(a).
Amended by R.1996 d.58, effective 2/5/1996.
See: 27 N.J.R. 3682(a), 28 N.J.R. 855(a).
Amended by R.1996 d.312, effective 7/15/1996.
See: 28 N.J.R. 1616(a), 28 N.J.R. 3627(b).
Amended by R.2001 d.44, effective 2/5/2001.
See: 32 N.J.R. 3891(a), 33 N.J.R. 573(a).
Rewrote (e).
Amended by R.2002 d.386, effective 12/2/2002.
See: 34 N.J.R. 1093(a), 34 N.J.R. 4053(a).
Inserted "excess" preceding "profit" throughout; rewrote (b); in (c), deleted former 5 and 6 and recodified former 7 and 8 as new 5 and 6; in (d)3, substituted "Actual" for "Excess"; deleted (g).
Amended by R.2004 d.97, effective 3/15/2004.
See: 35 N.J.R. 3098(a), 36 N.J.R. 1426(a).
In (b), substituted "12" for "eight" in the introductory paragraph; in (c)4, added new iii, recodified existing iii to v as iv and vi. added a new vii, viii, substituted "assessments" for "reimbursements received"; rewrote (d); deleted existing (e); recodified (f) as (e).
Amended by R.2004 d.338, effective 9/7/2004.
See: 36 N.J.R. 1279(a), 36 N.J.R. 4147(a).
In (c), inserted "and PLIGA" following "UCJF" in 6.
Amended by R.2008 d.86, effective 4/7/2008.
See: 39 N.J.R. 4057(a), 40 N.J.R. 1876(a).
Deleted former (c)4iv; recodified former (c)4v through (c)4viii as (c)4iv through (c)4vii; and in (c)6, inserted "Net", substituted "/net" for "and" and deleted "assessments" from the end.
Amended by R.2011 d.084, effective 3/7/2011.
See: 42 N.J.R. 2701(a), 43 N.J.R. 632(a).
In (a), inserted "excess" and ", using the spreadsheet posted on the Department's website"; in the introductory paragraph of (b), substituted "nine" for "12"; and in the introductory paragraph of (c), deleted "in the format of the exhibits appended to this subchapter," following "file".