N.J. Admin. Code § 11:3-16.13

Current through Register Vol. 56, No. 21, November 4, 2024

Section 11:3-16.13 - Prospective loss cost filing requirements for insurers

(a) In order for an insurer to incorporate a rating organization's prospective loss costs to establish its own rates, an insurer shall:

1. Be a participating insurer in the rating organization; and

2. File its loss cost multiplier using the Reference Filing Adoption Form (as set forth in Appendix Exhibit D to this subchapter and incorporated herein by reference). An insurer's loss cost multiplier shall be filed and become effective in accordance with 17:29A-1 et seq., 17:33B-31, and applicable provisions of N.J.A.C. 11:3-16 and 18. An insurer's final rates shall be a combination of the prospective loss costs and the loss cost multiplier.

i. An insurer may file modifications to the rating organization's approved prospective loss cost filing based on its own anticipated experience by using the Reference Filing Adoption Form. Supporting documentation shall be filed for any modification (upwards or downwards) to the rating organization's prospective loss cost filings. Supporting documentation must comply with 11:3-16.3(k).

ii. An insurer's loss cost multiplier shall remain in effect until the insurer revises the multiplier in accordance with 17:29A-14 and applicable provisions of N.J.A.C. 11:3-16 and 18.

(b) An insurer may vary expense loads by coverage. An insurer may use variable or fixed expense loads or a combination of these to establish their expense loadings by using the Reference Filing Adoption Form. An insurer's loss cost multiplier based on its expenses plus any profit provision shall be developed in accordance with 11:3-16.3 (l).

(c) Any insurer participating in a rating organization shall continue to use all rates and deviations currently in effect for its use, until disapproved pursuant to 17:29A-14 or until the insurer revises its rates, either by making an independent filing or by filing a Reference Filing Adoption Form.

N.J. Admin. Code § 11:3-16.13

New Rule, R.1998 d.128, effective 3/2/1998.
See: 29 N.J.R. 5240(a), 30 N.J.R. 828(a).
Recodified from N.J.A.C. 11:3-16.16 and amended by R.2005 d.176, effective 6/6/2005.
See: 36 N.J.R. 5640(a), 37 N.J.R. 2026(a).
In (a), substituted "Appendix Exhibit D" for "Appendix Exhibit C" in 2. Former N.J.A.C. 11:3-16.13, Incomplete filings and further proceedings, recodified to N.J.A.C. 11:3-16.11.