March 19, 2008
To: All NJAIRE Member Companies
2008 STATEWIDE CONVERSION REMINDER
The purpose of this letter is to remind you of new developments in the New Jersey Automobile Insurance Risk Exchange (NJAIRE) beginning with the upcoming 1st quarter 2008 data submission (due by May 15, 2008). In particular, this includes the new reporting requirements, assessments per exposure and information pertaining to financial transactions.
Please make an effort to ensure that the information contained in this letter reaches all of the necessary individuals. This letter is also available online on the NJAIRE website in the News Section at www.njaire.org.
NEW Territory Reporting Requirements
· Accident Years 2008 and subsequent
you are aware, new territories are expected to be implemented in
Please note Exhibit 17a from the NJAIRE Procedure Manual Exhibits is attached and 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 per the appropriate Reportable Claim Determination Form.
· Accident Years 2007 and prior
For accident years 2007 and prior, member companies must continue to report their data by the standard territory definitions and at the statewide level.
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.
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. 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.
If you have any questions or concerns about the above please contact:
Insurance Services Office, Inc.
for further contact information, visit the NJAIRE website at:
Insurance Services Office, Inc.
NJAIRE Central Processor
TERRITORY REPORTING OPTIONS
(ACCIDENT YEARS 2008 AND SUBSEQUENT)
For accident years 2008 and subsequent, only statewide totals are required. Companies can report their data in the following three ways:
1.) Report only statewide totals, either:
a) In the TOTAL row, or
b) In territory 001 and the TOTAL row.
2.) Report their data by the standard territory definitions (Exhibit 17) as well as the statewide totals.
3.) Report their data by the company defined territories as well as the statewide totals. This will vary among insurers, but only the statewide totals will be recorded by NJAIRE. Territory numbers are not limited to what is on Form #4. The territory numbers can be the company's territories in which the facsimile form can be used to reflect this.
Regardless of how the company opts to report their data, all
reports generated (including Compiled Figures Reports) will contain the
statewide totals in territory 001, which will be defined as "