N.J. Admin. Code § 11:3-20.9

Current through Register Vol. 56, No. 11, June 3, 2024

Section 11:3-20.9 - Excess profit, extraordinary loss, and reinvestment into New Jersey carry forwards

(a) In the event an excess profit is returned by an insurer in accordance with this subchapter and subsequent reports demonstrate and additional excess profits are indicated, an excess profit carry forward shall be established.

(b) In the event an extraordinary loss has been incurred by an insurer and subsequent excess profit reports demonstrate that an excess profit is indicated, an extraordinary loss carry forward shall be established.

(c) In the event that an excess profit is indicated for an insurer, and any prior excess profit carry forward and/or extraordinary loss carry forward has either not been established or has been exhausted, and a plan for reinvestment into New Jersey has been filed by the insurer, a reinvestment carry forward shall be established.

(d) Excess profit, extraordinary loss, and reinvestment carry forwards shall be applied by such insurer as an allowance against future determinations of excess profits. The allowance shall only be applied in a filing year that generates an excess profit, and the application of such allowance shall not exceed the amount of excess profit generated in the filing year. In such filing year, the insurer shall assign the carry forward or any portion thereof to the latest seven AYs of that filing. Once a carry forward is assigned to an AY, it shall remain with that AY until it is no longer displayed in subsequent filings. Once a carry forward or a portion thereof is assigned to a particular AY, that portion of the carry forward amount is exhausted and shall not be applied as an allowance against any other AY. The carry forward may be used until such allowance is exhausted or the end of 15 years from the date the excess profit was paid, extraordinary loss was incurred, or reinvestment is committed, whichever occurs first.

N.J. Admin. Code § 11:3-20.9

Amended by R.1990 d.470, effective 9/17/1990.
See: 22 N.J.R. 1025(a), 22 N.J.R. 2969(c).
New (c) added providing procedure by which insurer establishes "excess profit carry forward" credit.
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.2002 d.386, effective 12/2/2002.
See: 34 N.J.R. 1093(a), 34 N.J.R. 4053(a).
Rewrote (a) and (b); deleted (c).
Amended by R.2004 d.97, effective 3/15/2004.
See: 35 N.J.R. 3098(a), 36 N.J.R. 1426(a).
Added a new (b); recodified former (b) as new (c); in new (c) substituted "Excess profit and/or extraordinary loss, carry forwards" for for "This excess", and substituted "allowance" for "credit" throughout.
Amended by R.2008 d.86, effective 4/7/2008.
See: 39 N.J.R. 4057(a), 40 N.J.R. 1876(a).
Section was "Excess profit, extraordinary loss, carry forwards". Added new (c); recodified former (c) as (d); and in (d), deleted "and/or" preceding "extraordinary loss" twice, inserted "and reinvestment", ", and the application of such allowance shall not exceed the amount of excess profit generated in the filing year" and "or reinvestment is committed", substituted "a" for "the" preceding the first occurrence of "filing year", substituted the first occurrence of "any" for "a", substituted "seven" for "three" and substituted "15 years" for "a 15 year period".