New Jersey Automobile Insurance Risk Exchange

55 Madison Avenue, Morristown, New Jersey 07960

(973) 455-1308

DATE: November 28, 2001

TO: All NJAIRE Member Companies

FROM: Donald E. Foth, Chairman – NJAIRE Board of Directors

RE: Threshold Verification Requirements

The New Jersey Automobile Insurance Risk Exchange (NJAIRE) Board of Directors has received concerns about member companies not cooperating in dispensing insured threshold information to other member companies for NJAIRE reporting purposes.

The NJAIRE Plan of Operations, as approved by the New Jersey Commissioner of Banking and Insurance, contains specific threshold verification guidelines. These are displayed within Part 5.2 under Claims Guidelines. When a carrier is required to verify a claimant’s liability threshold, the carrier must follow one of five methods to ascertain the threshold. Two such methods include writing or telephoning the claimant’s carrier or agent for verification. There is no verification provision that requires advance policyholder authorization.

On behalf of the NJAIRE Board of Directors, I would appreciate it if you will bring this requirement to the attention of those persons who may be contacted for threshold verification. Should you have any concerns, please forward them to:

John Wirtz, General Manager

New Jersey Automobile Insurance Risk Exchange

55 Madison Avenue

Morristown, New Jersey 07960

Thanks for your cooperation.

c: NJAIRE Board of Directors

S. Sackey, New Jersey Department of Banking and Insurance

J. Wirtz, General Manager - NJAIRE