New Jersey Automobile Insurance Risk Exchange

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

(609) 890-3406

 

                                                                                                                                                March 3, 2005

 

To: All NJAIRE Member Companies:

 

This is to inform you of changes to the NJAIRE Procedure Manual that were approved by the Department of Banking and Insurance, and were effective on February 10.  The important changes are summarized below:

 

a.     A new section (E.) was added at the end of the description of the Annual Cash Settlement Transactions to incorporate two revisions:

 

1)  the ability to withhold payments from member companies that may be in financial trouble and may not be able to satisfy future NJAIRE obligations, and

 

2)  the ability to hold onto small partial payments until the final payment is made.

 

b.      Amendments to the section regarding Payment of Normal Assessments and/or Penalty Assessments.

 

Section 2.1 has been revised to more accurately reflect the existing process.  Thus, in lieu of automatically notifying the Board Chairman and the General Manager and, ultimately the Department of Banking and Insurance, when a member company is late in its payments, NJAIRE’s Central Processor will work with the member company to obtain the late payment.  If the Central Processor is unsuccessful, then it will notify the Board Chairman and the General Manager. The Department will be contacted only when necessary.   Also added is a line indicating that a member company must make all monthly payments in order to obtain a reimbursement from NJAIRE

 

Section 2.2 was added to specifically state that the late payment charges are required by statute, and that these charges cannot be changed by NJAIRE.

 

For NJAIRE contacts that have provided an e-mail address, an electronic copy of the revised Manual is attached.  All other contacts will receive a hard copy.  Please note that the revised Manual will be available on the NJAIRE web site, www.njaire.org.

 

If you have any questions, please contact me at jgilmartin@iso.com or 201-469-2327.

 

                                                                        Very truly yours,

 

 

 

                                                                        James Gilmartin

                                                                        NJAIRE Central Processor

 

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