N.J. Admin. Code § 11:3-20.6

Current through Register Vol. 56, No. 24, December 18, 2024

Section 11:3-20.6 - Reporting requirements for insurance holding company systems

(a) All private passenger automobile insurers that are part of an insurance company holding system shall file one combined excess profit report under N.J.S.A. 17:29A-5.7 and N.J.A.C. 11:3-20.5. In compliance with this obligation, separate certifications and individual excess profit reports may be filed for each insurer in an insurance holding company system and included with the combined excess profit report filed by the insurance company holding system.

(b) The Commissioner may order a complete excess profit report for any insurer in an insurance holding company system if, in his or her judgment, one or more of the insurers in that system are excessively subsidizing other insurers in that system. Excessive subsidization may exist if the number of dollars of excess profit, as calculated pursuant to this subchapter, for an individual insurer within an insurance holding company system, exceeds .5 percent (one half of one percent) of its earned premiums for the three calendar-accident years immediately preceding the year in which the excess profits report is due to the extent that this excess profit has not been refunded or credited to policyholders.

(c) Notwithstanding any provision of this section to the contrary, for purposes of evaluating the excess profit reports, the excess profit computation shall be performed solely on the insurance holding company system's combined excess profit report.

N.J. Admin. Code § 11:3-20.6

Amended by R.1991 d.17, effective 1/7/1991.
See: 22 New Jersey Register 2082(b), 23 New Jersey Register 106(a).
New subsection (c) added, provision for determining excessive subsidization.
Amended by R.1994 d.425, effective 8/15/1994.
See: 26 New Jersey Register 1938(b), 26 New Jersey Register 3441(b).
Amended by R.1996 d.312, effective 7/15/1996.
See: 28 New Jersey Register 1616(a), 28 New Jersey Register 3627(b).
Amended by R.2002 d.386, effective 12/2/2002.
See: 34 New Jersey Register 1093(a), 34 New Jersey Register 4053(a).
Rewrote (a); in (c), substituted "profit" for "profits" and inserted "excess" following "combined"; deleted (d), (e).
Amended by R.2004 d.97, effective 3/15/2004.
See: 35 New Jersey Register 3098(a), 36 New Jersey Register 1426(a).