N.Y. Comp. Codes R. & Regs. tit. 11 § 145.0
Current through Register Vol. 46, No. 51, December 18, 2024
(a) The purpose of this Part is to assure the accuracy and reliability of private passenger automobile statistical data reported to the Insurance Department by its licensed statistical agents. The statistical data provide part of the general support for insurers' rate and classification filings and supply important information with respect to the character and composition of the market. In addition, in most companies, the raw data utilized in a company's statistical reporting system are essentially the same data as those utilized in its ratemaking system. The accuracy and reliability of these data are of fundamental importance to the Insurance Department.(b) The procedures required to accomplish the goal of accuracy and reliability are specified in a set of manuals entitled the Statistical Data Monitoring System (SDMS). The SDMS comprises six elements: (1) Systems Descriptions and Procedural Control Checklists.(2) Statistical Sampling Procedures (Detail Data Verification).(3) Reasonability Test Procedures (Summary Data Verification).(4) Reconciliation of Statistical Data to Financial Statement.(5) Annual Self-Review and Certification by the insurer or statistical agent.(6) Periodic Review by the Insurance Department.(c) The SDMS utilizes a self-monitoring approach. Each company and statistical agent is required to carry out its own monitoring activities with due diligence. A self-monitoring approach was chosen because it helps to minimize costs while providing an effective means of increasing the accuracy and reliability of the statistical data.(d) Certain of the SDMS elements involve similar costs, regardless of the size of the company adopting them. The SDMS manuals specify compliance criteria which reduce the requirements, for small companies and small systems in large companies, where the data do not have a significant impact on the aggregate statistical reporting.N.Y. Comp. Codes R. & Regs. Tit. 11 § 145.0