N.J. Admin. Code § 11:3-46.6

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

Section 11:3-46.6 - PAIP voluntary rating tier

(a) Pursuant to N.J.S.A. 17:29D-1i, the PAIP Plan of Operation shall provide for the establishment of a voluntary rating tier in which persons residing in UEZs may be written by certain UEZ agents and qualified producers, as set forth in 11:3-46.7. The rates utilized in the voluntary rating tier shall be the voluntary market rates in use by the insurer to which the risk is distributed.

(b) The voluntary rating tier shall not provide insurance coverage for more than five percent of the aggregate number of private passenger automobile non-fleet exposures being written in the total private passenger automobile insurance market in this State. The number of exposures written in the voluntary rating tier shall be included for purposes of determining the maximum number of overall exposures permitted to be written in the PAIP pursuant to N.J.S.A. 17:29D-1d. The Commissioner may suspend writings in the voluntary rating tier if he or she finds that total amount of exposures written in the PAIP is approaching the maximum amount permitted to be written in the PAIP pursuant to N.J.S.A. 17:29D-1d.

(c) An insurer that does not meet its goal, for qualified insurers, or UEZ share, for insurers that are not qualified insurers, shall be subject to distributions in an amount required for the insurer to meet its goal or UEZ share, as applicable, evaluated based on the insurer's quarterly reports filed pursuant to 11:3-46.1 3 in accordance with (f) below.

(d) Insurers that have, and maintain, an aggregate voluntary private passenger automobile insurance marketshare in UEZs that is at least 95 percent of the insurer's goal, if a qualified insurer, or UEZ share, if not a qualified insurer, shall be exempt from distributions pursuant to this section.

(e) An insurer shall be subject to initial distributions beginning September 1, 1998 unless the insurer has filed a plan to become a qualified insurer pursuant to 11:3-46.4 by July 1, 1998 that provides as a goal to eliminate its shortfall by March 31, 1999; and either:

1. Has written an amount of in-force exposures equal to at least 20 percent of its goal by June 30, 1998; or

2. Has filed a report with the Department prior to September 1, 1998 that demonstrates that the insurer has written an amount of in-force exposures equal to at least 30 percent of its goal as of September 1, 1998.

(f) An insurer shall be subject to subsequent distributions of exposures if it fails to maintain its goal as of June 30 and each calendar quarter thereafter following the establishment of the UEZ share, based on the report of in-force exposures filed pursuant to 11:3-46.1 3. The Department shall monitor the amount of an insurer's in-force writings quarterly to determine whether it is or remains subject to distributions.

(g) Insurers that are exempt from participation in the PAIP pursuant to 11:3-2.4 shall not be subject to distributions pursuant to this section. To the extent that an insurer is exempted from the obligation to participate in the PAIP pursuant to 17:33B-23 and 17:33B-24, subject to an informational filing withdrawal pursuant to N.J.A.C. 11:2-29, or under administrative supervision pursuant to 17:51A-1 et seq., and that specific orders address its obligations, those orders will continue to control, and an insurer's obligations under these rules shall be addressed in those orders or supplementary orders.

N.J. Admin. Code § 11:3-46.6

Amended by R.1999 d.218, effective 7/19/1999.
See: 31 N.J.R. 920(a), 31 N.J.R. 1927(a).
In (f), rewrote the first sentence.
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 (a), deleted "eligible" preceding "persons"; and in (g), substituted "an informational filing" for "a plan of orderly".