New Jersey Automobile Insurance Risk Exchange

P.O. Box 66065, Lawrenceville, New Jersey 08648

(609) 570-4110

                                                                                                                                                June 11, 2007

To: All NJAIRE Member Companies:

This is to inform you of changes to the NJAIRE Plan of Operation and Procedure Manual that were approved by the Department of Banking and Insurance, and were effective on June 5.  The important changes are summarized below:

I. Plan of Operation

The composition of the Board of Directors was changed to reflect the passage of A2013.  In addition, a procedure was created for the appointment of two at-large members to the NJAIRE Board.

II. Plan of Operation and Procedure Manual

A one-year statute of limitations was established for the Annual Cash Settlement (ACS) results.  In short, a member has until one year after the mailing of the ACS to notify NJAIRE of any disputes regarding that ACS's results.

III. Procedure Manual

The NJAIRE Board now has the ability to temporarily defer a portion of a company's ACS assessment where it's assessment for a territory and accident year is very high as a result of a low industry count of BI claimants against zero threshold policies.  The deferral is meant to minimize the impact of such a situation.  See page 17 of the Procedure Manual for more details.

Please note that the revised documents will be available on the NJAIRE web site, www.njaire.org.