(609)
570-4110
December 21, 2007
To: All NJAIRE Member Companies
NJAIRE 2008 ANNUAL LETTER TO MEMBER COMPANIES
The purpose of this 2008 NJAIRE Annual Letter is to inform you of new developments in the New Jersey Automobile Insurance Risk Exchange (NJAIRE). Such developments may include any changes in the reporting requirements, assessments per exposure, or any other information pertinent to company data submissions or financial transactions. Also included are schedules of financial and statistical requirements (Exhibits 1 & 2) outlining your company's responsibilities for the upcoming year.
NJAIRE requirements are diverse and probably involve several persons in your company. Each one of these persons will need to know certain information in this letter to carry out his or her responsibilities. Please make an effort to ensure that the information contained in this letter reaches all of the necessary individuals. This letter is available online on the NJAIRE website in the News Section at www.njaire.org.
NEW Territory
Reporting Requirements
·
Accident
Years 2008 and subsequent
As
you are aware, new territories are expected to be implemented in
The revised NJAIRE Procedure
Manual is included for your reference.
Please note Exhibit 17a contains the territory reporting options for
accident years 2008 and subsequent. If
your company opts to report the data as stated in option 1 of Exhibit 17a, it
is strongly recommended that your company adopt additional internal review
processes that are performed at the territory level prior to quarterly
submissions to ISO. In particular a
procedure that verifies whether Reportable Claims with loss severities in
excess of $20,000 - $30,000 are in fact Reportable Claims as per the
appropriate Reportable Claim Determination Form.
·
Accident
Years 2007 and prior
For accident years 2007 and prior, member companies should continue reporting their data by the standard territory definitions and at the statewide level as in the past.
NEW NJAIRE Assessment Per Exposure
For accident year 2008, an assessment of $110 per zero dollar exposure will be used statewide, as set by the NJAIRE Actuarial Committee and approved by the NJAIRE Board of Directors.
The NJAIRE Board of Directors has elected to change the NJAIRE Central Bank. Member companies will be notified in a separate communication when the change has been finalized and will be provided the new payment instructions.
NJAIRE is equipped to receive payments by wire transfer. Should your company wish to make its payments via wire transfer, contact ISO for instructions.
Closing out of Accident Year 1998 (Form
#3)
The
final reporting of claims for accident year 1998 will be the fourth quarter of
2007. The final evaluation of this year
will take place in the Twenty Third Annual Cash Settlement, evaluated as of
3/2008. Resubmissions for accident year
1998 will be allowed until 8/1/2008. Please note: any submissions for
accident year 1998 or prior for account quarters subsequent to the fourth
quarter of 2007, and any resubmissions for accident year 1998 received after
8/1/2008 will not be processed.
NJAIRE Website
NJAIRE
reporting information will continue to be available on the internet at www.njaire.org. The website includes NJAIRE related forms,
the NJAIRE Plan of Operations, Procedures Manual, contact information,
frequently asked questions, information regarding Board of Directors meetings,
and an updated news section. The website
also includes a section regarding the Annual Seminar, with presentations by:
NJAIRE compliance auditor – AIPSO and the Central Processor – ISO, and a brief
presentation over-viewing NJAIRE.
Claim Determination Forms
I
have attached a full set of the most current Reportable Claim Determination
Forms to be used as follows (These forms have not changed since the last Annual
Letter.):
Reportable Claim Determination Form
(For accident dates
Reportable
Claim Determination Form (For accident dates
after
The Reportable Claim Determination Forms can also be found in Adobe document format (.pdf) on the NJAIRE website.
Financial Transactions
For
accident year 2008, the financial transactions based on the Form #4 experience
will be carried out using a provisional assessment of $110 per zero dollar
exposure, as set by the NJAIRE Actuarial Committee and approved by the
As
in the past, you will receive your company's Compiled Figures Reports to help
you calculate your monthly payment charges.
Remember, for accident years
2008 and subsequent, only Territory 001 (which is equivalent to the statewide
totals) will have data and an assessment on your company's Compiled Figures
Reports. In order to calculate
the monthly payments, divide the calculated assessment charges from Form #4 by
three and round to the nearest dollar (see Exhibit 1). Each
member company is required by statute to submit the appropriate monthly
payments to NJAIRE in a timely manner.
Failure to do so will result in a 10% per annum late penalty.
Call Forms
Separate form numbers (Form #3 and Form #4) distinguish one call for statistics from another. For your convenience, this package includes copies of both call forms (Attachments 3 & 4) you can use for your submissions. Call forms are also available on the NJAIRE website in Excel format (.xls).
If you plan to use facsimiles of the call forms rather than the forms we provide, it is crucial that we be able to distinguish which form is being submitted. Therefore, we require that your facsimiles be clearly labeled as Form #3 or Form #4. Completed call forms should be emailed (njairecentralprocessor@iso.com) or mailed to the NJAIRE Central Processor at this address:
Michael McAuley (17-8)
Insurance Services Office, Inc.
Audits
In 2008, audits will continue to be performed. Any company that has been audited and had reporting errors that require correction will be notified in a separate letter.
Statement of Compliance
A
Statement of Compliance must be completed by your company’s Chief Financial
Officer (CFO), or an officer designated by the CFO, and mailed to ISO by March
31, 2008 (see Exhibit 3). It must be
filed by all companies authorized to write personal automobile insurance in
You are required to send in a Statement of Compliance annually. Please refer to the Procedures Manual for more information.
Company -- Person to Contact
It is important to provide ISO, as the NJAIRE Central Processor, the contact information for a person with an understanding of the workings of, and the company’s responsibilities to NJAIRE. As a result, we ask that you complete the attached Company Response Form (Exhibit 4) with the current contact information for the proper knowledgeable person with regards to NJAIRE. If there is more than one person involved with the various aspects of NJAIRE, please provide information for all relevant parties. Please include the e-mail addresses of all contacts. The people identified on this form will receive all relevant NJAIRE mailings, including both statistical information and financial transaction information.
Additionally, NJAIRE maintains a list of contacts for the purposes of threshold verification. Please complete the attached Threshold Contact Form (Exhibit 5) and mail to an NJAIRE contact at ISO by February 15, 2008.
Null Reporters
The
NJAIRE Response form (Exhibit 6) is for companies which are authorized to write
personal automobile insurance in
The
form has two response boxes.
Please note that this form must be received
by ISO by February 15, 2008. If this
form is not submitted, quarterly statistics will be expected. Failure to submit quarterly statistics on
schedule will result in late submission charges of $50 per working day.
If you have any questions or concerns about the above please contact:
Michael McAuley
Insurance Services Office, Inc.
(201) 469-2323
for further contact information, visit the NJAIRE website at:
www.njaire.org
Sincerely,
William J. Clarke
General Manager
gmanager@njaire.org
Exhibit
1
2008 NJAIRE COMPANY
FINANCIAL TRANSACTION SCHEDULE
MONTHLY PAYMENT SCHEDULE
|
COMPILED FIGURES REPORTS FOR: |
FACTOR TO MULTIPLY TIMES
THE CALCULATED ASSESSMENT CHARGE |
DATE DUE: |
|
|
|
|
|
Second Quarter 2007 |
1/3 |
1/15/08 |
|
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|
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|
Third Quarter 2007 |
1/3 |
2/15/08 |
|
Third Quarter 2007 |
1/3 |
3/15/08 |
|
Third Quarter 2007 |
1/3 |
4/15/08 |
|
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|
Fourth Quarter 2007 |
1/3 |
5/15/08 |
|
Fourth Quarter 2007 |
1/3 |
6/15/08 |
|
Fourth Quarter 2007 |
1/3 |
7/15/08 |
|
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|
First Quarter 2008 |
1/3 |
8/15/08 |
|
First Quarter 2008 |
1/3 |
9/15/08 |
|
First Quarter 2008 |
1/3 |
10/15/08 |
|
|
|
|
|
Second Quarter 2008 |
1/3 |
11/15/08 |
|
Second Quarter 2008 |
1/3 |
12/15/08 |
|
Second Quarter 2008 |
1/3 |
1/15/09 |
Exhibit
2
2008 NJAIRE STATISTICAL
REQUIREMENTS SCHEDULE
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DATA FOR: |
DUE: |
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Fourth Quarter 2007 |
2/15/08 |
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First Quarter 2008 |
5/15/08 |
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Second Quarter 2008 |
8/15/08 |
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Third Quarter 2008 |
11/15/08 |
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Fourth Quarter 2008 |
2/15/09 |
Exhibit 3
NEW
STATEMENT OF COMPLIANCE
(To be completed by the company’s Chief Financial Officer, or the officer responsible for NJAIRE reporting, no later than 45 days after the close of the fourth calendar quarter.)
During the course of the (prior year) calendar/fiscal year, (Company’s Name) has conducted various financial and operational reviews. These reviews included the operations of (Company’s Name) as they relate to the New Jersey Automobile Insurance Risk Exchange. Corrective action has been taken on any findings of a significant or material nature.
Based on the results of our reviews, and any corrective action taken, it is our opinion that (Company’s Name) operations are in substantial compliance with the requirements of the New Jersey Automobile Insurance Risk Exchange Procedure Manual.
Sincerely,
__________________________ ___________________________
Date Signature
___________________________
Title
Exhibit
4
NEW
COMPANY RESPONSE FORM
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Company: |
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Company No: |
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Primary AIRE Contact Person:
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Name: |
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Address: |
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E-Mail Address |
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Telephone: |
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Additional AIRE Contact Person:
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Name: |
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Address: |
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E-Mail Address |
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Telephone: |
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Return to: |
Michael McAuley Actuarial Analyst ISO |
Exhibit
5
NEW
CLAIMANT TORT THRESHOLD
VERIFICATION CONTACT
IMPORTANT: One contact must be provided for every
company writing Personal Auto business in
Per the NJAIRE Procedure Manual, any changes to the contact information shall be reported to NJAIRE. As you become aware of changes, please send them to the ISO contact on the NJAIRE web site (www.NJAIRE.org).
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Contact Name: |
______________________________________________ |
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Title: |
______________________________________________ |
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Mailing Address: |
______________________________________________ |
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______________________________________________ |
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E-Mail Address |
______________________________________________ |
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Telephone: |
______________________________________________ |
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Fax: |
______________________________________________ |
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Verification of
Policyholder Tort Threshold Selection for: 1. Insurer Group |
______________________________________________ |
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2. Companies included: |
(add more names on the back of the form, if needed) |
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Company Name: |
______________________________________________ |
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Company Name: |
______________________________________________ |
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Company Name: |
______________________________________________ |
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Company Name: |
______________________________________________ |
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Company Name: |
______________________________________________ |
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Company Name: |
______________________________________________ |
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Company Name: |
______________________________________________ |
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Company Name: |
______________________________________________ |
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Company Name: |
______________________________________________ |
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[ ]This is the entire group |
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Exhibit
6
NJAIRE RESPONSE FORM
Indicate (
X ) which option you are
choosing and provide the necessary information.
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1. |
We anticipate having no data to report for the
NJAIRE Call for Statistics for |
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the year indicated below: |
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First Quarter - Fourth Quarter 2008 |
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This form is due by February 15 of the year
indicated above. |
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2. |
We are submitting quarterly statistics as of the
quarter indicated below: |
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_________Quarter 2008 |
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This form should accompany the first quarterly
submission. |
Please complete the following:
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Contact Person: |
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Title: |
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Company/Group Name: |
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(Use number assigned by
ISO) |
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Company Group Number: |
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Address: |
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E-mail Address: |
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Telephone Number: |
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Mail to: |
Michael McAuley Actuarial Analyst ISO |
Note: Please make copies of this form for use as needed.