N.J. Admin. Code § 11:3-46.3

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

Section 11:3-46.3 - Designation of UEZ and UEZ share

(a) Pursuant to 17:33C-2, the Commissioner has identified and designated as UEZs certain urban-based geographic areas where the Commissioner has found that automobile insurance consumers would benefit from increased access to automobile insurance as set forth below. UEZs shall be designated by municipality consisting of one or more zip codes.

(b) In determining UEZ areas, the Commissioner first determined those areas of the State that are urban, as follows:

1. The eight Urban Centers designated by the State Planning Commission, Appendix C in the most recent edition of the State Plan; and

2. Municipalities with populations in excess of 10,000 as of the 1990 census and with population densities in excess of 3,500 persons per square mile.

(c) From the urban areas of the State pursuant to (b) above, the Commissioner has designated the UEZs using the following criteria:

1. Municipalities where less than half of the insurers with a Statewide marketshare of at least 0.5 percent have a marketshare in the municipality that is at least equal to 90 percent of their Statewide marketshare; and which are either:

i. Located in those rating territories where the pure premium for business in that territory divided by the pure premium for business in all territories exceeds 1.35, based on the data from the Department's statistical agents for calendar-accident years 1993 through 1995 evaluated as of March 31, 1996;

ii. Designated as an Urban Center by the State Planning Commission, Appendix C in the 1992 edition of the New Jersey State Development and Redevelopment Plan; or

iii. Designated in the top 20 distressed municipalities by the State Planning Commission, in the 1996 Municipal Distress Index, Appendix B in the 1992 edition of the New Jersey State Development and Redevelopment Plan.

(d) The initial UEZ areas determined pursuant to (b) and (c) above are set forth in Exhibit A in the Appendix to this subchapter, incorporated herein by reference.

(e) The Commissioner shall, in consultation with the UEZ Advisory Committee established pursuant to N.J.S.A. 17:33C-2b, periodically review the availability of automobile insurance in this State and determine whether any revisions to the designation of UEZ areas are necessary to further the intent of 17:33C-1 et seq.

(f) The Commissioner shall advise each insurer of its UEZ share calculated as set forth in Exhibit B in the Appendix to this subchapter, incorporated herein by reference, by Order on or about November 15 of each year.

1. An insurer's initial UEZ share shall be based on each insurer's in-force exposures in UEZs reported for the period ended September 30, 1997. Subsequent UEZ shares shall be based on in-force exposures for the period ended September 30 of each year thereafter.

N.J. Admin. Code § 11:3-46.3

Amended by R.1999 d.218, effective 7/19/1999.
See: 31 New Jersey Register 920(a), 31 New Jersey Register 1927(a).
Rewrote (c).