N.J. Admin. Code § 11:3-19A.5

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

Section 11:3-19A.5 - Standards of approval, disapproval or modification of tier placement criteria and tier ratings plans

(a) A tier rating plan shall be disapproved for any of the following reasons:

1. The plan does not comply with 17:29A-46.1 et seq. and this subchapter;

2. The plan assigns a vehicle insured under the policy to a higher than standard tier solely for the accumulation of four or less motor vehicle violation points by any named insured or a regular operator;

3. The insurer failed to submit the items required to be filed pursuant to this subchapter; or

4. The plan fails to meet any of the standards for rating systems established by statute or administrative rule.

(b) Tier placement criteria shall meet the following standards:

1. No criterion shall be based on the territory in which an insured resides or any other factor which the Commissioner finds to be a surrogate thereof;

2. Tier placement criteria shall be based on a reasonable and demonstrable relationship between the risk characteristic of the driver(s) and vehicle(s) insured and the hazards insured against;

3. Tier placement criteria shall be based on objective, specific and verifiable criteria. No underwriting rule shall be based on subjective judgments such as "pride of ownership evident," "poor attitude," "unsatisfactory environment to conduct business," etc.; and

4. Tier placement criteria shall not be based on race, color, creed, religion, national origin or ancestry.

N.J. Admin. Code § 11:3-19A.5

Amended by R.2003 d.468, effective 12/1/2003.
See: 35 N.J.R. 3097(a), 35 N.J.R. 5422(a).
In (a), rewrote 3; added (c).
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).
Section was "Standards of approval, disapproval or modification of underwriting rules and tier ratings plans". Deleted (a)2, recodified former (a)3 as (a)2, in (a)2, deleted "as defined in N.J.A.C. 11:3-44.2" at the end, recodified former (a)4 and (a)5 as (a)3 and (a)4; in the introductory paragraph of (b), substituted "Tier placement criteria" for "Underwriting rules for tier placement in a tier rating plan"; in (b)1, substituted "criterion" for "rule"; in (b)2 and (b)3, substituted "Tier placement criteria" for "Underwriting rules"; in (b)3, inserted "and" at the end; deleted former (b)4 and (b)5; recodified former (b)6 as new (b)4; rewrote (b)4; and deleted (c).