N.J. Admin. Code § Tit. 11, ch. 3, subch. 28, app B

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

Appendix B

AMORTIZATION FORMULA

The Fund shall evaluate the cost effectiveness of modifications to a residence and shall establish an amortization schedule based on information submitted to the Fund by the insurer. The insurer shall file with the Fund the information in categories (a) through (d) below. This information shall be accompanied by the documentation which supports the information in those categories. The factors which shall be considered by the Fund include:

(a) Cost of modifications;

(b) Annual cost of home care, including but not limited to, nursing care, therapy, transportation for medical treatment and medical supplies;

(c) Life expectancy of the injured person;

(d) Annual cost of other residential care alternatives;

(e) Monthly amount amortized; and

(f) Term of amortization in months.

1. The formula which the Fund shall evaluate to determine the cost effectiveness of requested home modifications is as follows:

(a + (b x c)) < (d x c)

The Fund shall only approve modifications where the above formula applies.

2. The formula to determine the amount to be amortized monthly is as follows:

(d - b)/12 = e

3. The formula to determine the term of the amortization schedule is as follows:

a/e = f

The following examples demonstrate how the formulas shall be applied:

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APPENDIX B

ITEM 1

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APPENDIX B

ITEM 2

THIS FORM IS A FORMAT AND NOT TO BE USED IN SUBMITTING REPORTS TO THE FUND

60 DAY REPORT

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APPENDIX B

ITEM 3

THIS FORM IS A FORMAT AND NOT TO BE USED IN SUBMITTING REPORTS TO THE FUND

6 MONTH SUMMARY REPORT

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N.J. Admin. Code Tit. 11, ch. 3, subch. 28, app B

New Rule, R.1994 d.597, effective 12/5/1994.
See: 26 N.J.R. 2190(a), 26 N.J.R. 4772(a).