Phone 609-890-3406 ~ Fax 609-890-3407 ~ Email gmanager@njaire.org
ANNUAL REPORT OF OPERATIONS –
NJAIRE Officers
for 2004
Chairman – Don Foth, State
Farm
Vice-Chairman – Tom Myers,
High Point Safety & Insurance Mgmt Co.
Secretary/Treasurer – Tom
Carriers to be
Audited for 2004
Prudential
Keystone
Proformance
Metropolitan, Direct/Metropolitan,
Group/Metropolitan Property & Casualty, (St.Paul)
Lancer
Public Service
Central Mutual
Countryway
Selection of
Compliance and Financial Auditors
Compliance Auditors – AIPSO
Audit Services
Financial Auditors – Withum,
Smith & Brown
Important events
occurring during 2003
·
The transition of
independent auditors during 2003 for the audit of member company data and the
financial statements of the Exchange went very smoothly.
·
The backlog of
company audits for prior years was resolved during the year. All fees and expenses were also resolved and
paid in full.
·
All members of the
Board have been approved by the New Jersey Senate and/or the Governor’s office.
·
The Board approved
the recommendation of the Audit Committee to hold seminars with appropriate
carrier personnel to enhance the understanding of NJAIRE statutes and carrier
responsibilities in regard thereto.
·
Restructuring of
the NJAIRE Plan of Operations is in progress to ensure completeness and to
ensure that actions taken by the Board and approved by the NJDOBI are
appropriately reflected in the Plan.
This will be completed in the first half of 2004 and posted on the
NJAIRE website.
·
With the guidance
of Board member & Finance and Investment Committee Chair Frank Coscia, the investment of NJAIRE temporary funds are continuously
reviewed to allow greater yields within the statutes and acceptable risk
parameters. This has been particularly
important in our current economic situation where interest yields continue at
relatively low levels.
·
The cash
management plan, developed by the combined efforts of Mr. Coscia
and NJAIRE counsel Paige Berry, is available upon request.
·
The Board
continued to work through changes experienced by
·
Indemnification of
Board Members was clarified by
2004, through additional
protection to supplement indemnification provided through the Plan of
Operations by
all
Phone 609-890-3406 ~ Fax 609-890-3407 ~ Email gmanager@njaire.org
ANNUAL REPORT OF OPERATIONS –
Important events occurring during 2004…… continued
·
The Annual Cash
Settlement was successfully completed by ISO adopting the following items
recommended by the NJAIRE Actuarial Committee and approved by the Board.
◊ Accident years 1993 and
1994 were closed for further reporting as of
◊ Accident year 1999/ 2000
was converted from an exposure to a claim method for Form 4
submissions effective with the
2003 Annual Cash Settlement.
◊ The current year Annual
Cash Settlement interest rate was established at 2%.
·
NJAIRE commenced
the second year of its centrally located
·
ISO, in
conjunction with the Website Committee, continued to develop and expand the
NJAIRE website. It can be relied upon
for accurate, current and informative NJAIRE data, at www.njaire.org
·
NJAIRE base rates
for accident year 2003 have been updated to use the most current NJPAIP rates
for the base rate.
·
Four Assessment
percentages or pools were amended as follows:
|
Year |
Prior* |
Current* |
|
1993 |
50% |
49% |
|
1996 |
$77.5 mm |
$77.0 mm |
|
1999-2000: |
|
|
|
Form 3 |
$50.0 mm |
$48.0 mm |
|
Form 4 |
$54.1 mm |
$65.0 mm |
* Dollars in
Millions
Phone 609-890-3406 ~ Fax 609-890-3407 ~ Email gmanager@njaire.org
ANNUAL REPORT OF OPERATIONS –
Financial statement for 2002, 2003 (6 months), and
2004 Budget
NJAIRE Financial Statement
|
|
2002 |
2003 (6 months) |
|
|
|
|
|
|
|
Assessments |
55,558,981 |
27,632,389 |
|
|
Reimbursements |
55,558,981 |
27,632,389 |
|
|
Administration |
1,263,559 |
557,444 |
|
|
|
|
|
|
|
Expenses |
2002 |
2003 (6 months) |
2004 Budget |
|
|
|
|
|
|
Central
Processor |
730,000 |
357,500 |
745,000 |
|
Salaries |
26,625 |
27,100 |
55,766 |
|
Clerical |
781 |
- |
3,000 |
|
Rent
& Rent Items |
7,976 |
3,000 |
8,000 |
|
Meetings
& Travel |
1,464 |
414 |
2,000 |
|
Postage |
398 |
- |
1,000 |
|
Printing
& Stationary |
795 |
420 |
3,000 |
|
Telephone
& Fax |
1,772 |
- |
2,000 |
|
Insurance |
1,266 |
712 |
8,000 |
|
Audit |
440,141 |
152,651 |
182,750 |
|
Legal
Fees |
36,011 |
9,920 |
12,000 |
|
Board
Fees |
1,250 |
500 |
3,000 |
|
Miscellaneous |
16,080 |
5,227 |
4,484 |
|
|
|
|
|
|
Total |
1,263,559 |
557,444 |
1,030,000 |