N.J. Admin. Code § 11:2-35.4

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

Section 11:2-35.4 - Informational filing requirements

(a) When requesting immediate or discretionary relief pursuant to the FAIR Act, an insurer shall provide with its request the following information in a clear, concise and complete manner.

1. A cover letter stating:

i. The name of the applicant;

ii. The form and specific amount/percentage of relief which the insurer is requesting and a statement of facts relied upon as the basis under which relief is sought; and

iii. A name, telephone number and telefax number of a contact person familiar with the filing to whom the Department may direct any additional questions;

2. Exhibits for the latest preceding calendar quarter ending at least 45 days prior to the date of the request, and, unless otherwise indicated, on a statutory accounting basis that show:

i. Balance sheet;

ii. Profit and loss statement, containing information as set forth in the statutory annual statement page 4, Underwriting and Investment Income Exhibit, Statement of Income; and

iii. Cash flow page;

3. Exhibits by each line of business written in New Jersey that show:

i. Profit and loss statements containing information as set forth in (a)2ii above by line of business for three calendar years prior to the date of filing;

ii. Profit and loss statements containing information as set forth in (a)2ii above by line of business from the period beginning January 1 in the year of filing to date of the filing as reported in the NAIC quarterly statement filed immediately preceding the date of the filing; and

iii. A detailed description of the method of allocation of expenses by line of business;

4. A detailed explanation, with supporting documentation, of the projected effect that fulfillment of the obligation would have on the immediate and long term financial condition of the company unless relief is granted as requested;

5. The most recent financial examination report conducted by the state of domicile;

6. A statement that summarizes any pending New Jersey rate filing requests projected to be made on or after July 1 of the year in which relief was requested. The Department filing number, the amount of the rate request, and the requested effective date of the change shall be included;

7. A statement addressing whether the company is planning to modify its method of doing business in any way including, but not limited to, new acquisitions or new restructuring;

8. If the company is a member of a holding company system, the following shall be provided:

i. A list of all members of the holding company system;

ii. A list of all intercompany transactions for the period noted in (a)3i and ii above;

iii. A balance sheet and profit and loss statement for the ultimate parent company on a consolidated basis for the periods noted in (a)3i and ii above; and

iv. A balance sheet and profit and loss statement for the ultimate parent company on an unconsolidated basis for the periods noted in (a)3i and ii above;

9. A certification of reserves for unearned premiums, losses and loss adjustment expense, such certification to be attested to by a qualified actuary as defined in N.J.A.C. 11:1-21.1;

10. A report signed by the certifying actuary referred to in (a)9 above, which includes in summary form, if necessary, all data utilized by him or her, a complete explanation of methods and assumptions and sufficient additional narrative to account for any features of the data or circumstances necessary for proper interpretation;

i. All data shall be presented as hard copy and on 5 1/4 inch floppy diskettes as Lotus 1-2-3 worksheet files or the equivalent thereof with page breaks omitted (submitting, in total, one copy of the diskettes for each filing). The data shall include, at a minimum, relevant loss and loss expense triangles both on paid and incurred bases for sufficient numbers of accident years and maturities such that, on a paid basis, at least five accident years are developed to within 90 percent of ultimate. If only a lesser amount of data is available, state the reason for this deficiency.

ii. In the event that paid or incurred loss developments have been distorted by changes in the rate of settlements, in the relative adequacy of reserving, in the mix of business, or in other relevant factors, such distortions shall be fully explained in the narrative. To include the impact of these distortions, appropriate adjusted triangles shall also be supplied plus corresponding triangles of reported, paid and outstanding claim counts.

iii. Annual earned premiums shall be shown as the first column of each triangle;

11. For insurers seeking discretionary relief and asserting that it would experience an adverse change in its rating by A.M. Best and Company, Dun and Bradstreet, Moody's or Standard and Poor's, a statement from a representative of the appropriate rating agency that the insurer will experience an adverse change in its rating through fulfillment of the obligation from which relief is sought; and

12. Any other information the Commissioner may deem relevant to the consideration of the request.

(b) If the applicant is a member of a pooling operation among affiliates, all information requested in items (a)2 and 3 above shall be provided on a pre-pooled and post-pooled basis. The applicant shall indicate the names of other members in the pool that are also filing for exemption, abatement, deferral or suspension of, or excuse from an obligation, as the case may be, under the FAIR Act.

(c) An insurer asserting that the Department's review of its request be evaluated on a particular basis (that is, pre-pooled, post-pooled, consolidated or unconsolidated) shall submit a written statement which sets forth the reasons for which it believes evaluation on a particular basis is appropriate to that insurer, and the reasons for which evaluation on other bases would be inappropriate.

N.J. Admin. Code § 11:2-35.4

Amended by R.1993 d.24, effective 1/4/1993.
See: 24 N.J.R. 3212(a), 25 N.J.R. 138(a).
Exhibits further specified at (a)3; deleted (a)4; text at (b) clarified.
Amended by R.2001 d.6, effective 1/2/2001.
See: 32 N.J.R. 3530(a), 33 N.J.R. 85(a).
In (a)6, deleted ", including any New Jersey flex rate filings" following "New Jersey rate filing requests", and deleted "of Insurance" following "Department".