17:29A-5.7 Annual profits report.
563 words·~3 min read·
/nj/title-17/chapter-29a/17-29a-5-7·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
2. a. Each insurer, except those exempt from filing pursuant to section 6 of this act, shall annually file with the commissioner, on or before July 1 of each year, a profits report containing the information and calculations required by this section. The information shall be provided with respect to the insurer's New Jersey private passenger automobile insurance business separately for each of the following coverages and for all these coverages combined:
(1)Personal injury protection, including all options;
(2)Bodily injury liability, reported at total limits;
(3)Other liability, consisting of property damage liability and uninsured and underinsured motorist coverages, all reported at total limits;
(4)Physical damage, consisting of comprehensive and collision coverages, including all deductibles.
A separate profits report shall be filed for each insurer and each insurer in an insurance holding company system. Each insurance holding company system shall file a separate combined profits report for all insurers in its system. The excess profits computation for an insurance holding company system shall be performed on its combined profits report, except that the commissioner may order an adjustment in the combined profits report if in his judgment, upon examining each insurer's profits report in the insurance holding company system, one or more of the insurers in that system are excessively subsidizing other insurers in that system.
b. The profits report shall contain the following information, in a manner and for a time period as prescribed by the commissioner by regulation:
(1)Losses paid;
(2)Losses developed to an ultimate basis;
(3)Loss adjustment expenses paid;
(4)Loss adjustment expenses developed to an ultimate basis;
(5)AIRE compensation received; and
(6)AIRE compensation developed to an ultimate basis.
c. The profits report shall contain the following information for the calendar-accident year ending December 31 immediately preceding the date the profits report is due:
(1)Premiums written;
(2)Premiums earned;
(3)All other expenses, itemized separately as follows:
(a)All commissions and all brokerage fees;
(b)All taxes, all licenses and all fees;
(c)All AIRE charges;
(d)All UCJF assessments;
(e)All other acquisition costs and all general expenses;
(f)All policyholder dividends incurred by the insurer, including any excess profits refunded or credited to policyholders;
(g)The net of all catastrophe reinsurance premiums incurred to unaffiliated catastrophe reinsurers and all sums paid or owed by unaffiliated catastrophe reinsurers for losses that occurred during the calendar-accident year, subject to such substantiation of expense as the commissioner may require;
(h)All expenses incurred for the services of a limited assignment distribution carrier pursuant to subsection c. of section 1 of P.L.1970, c.215 (C.17:29D-1);
(4)Allowance for profit and contingencies, calculated by multiplying the premiums earned by the profit and contingency factors authorized for use with the insurer's approved rate filings, which profit and contingency factors shall be based on the insurer's targeted rate of return, method of doing business, the cost of capital and other relevant economic considerations of the insurer;
(5)Anticipated investment income;
(6)Actual investment income; and
(7)UCJF reimbursements received.
d. The profits report shall include a clear and explicit calculation of each of the following items, in a manner and for a time period as prescribed by the commissioner by regulation:
(1)Underwriting income;
(2)Actuarial gain;
(3)Excess investment income;
(4)Development adjustment;
(5)Total actuarial gain; and
(6)Excess profits.
L.1988,c.118,s.2; amended 2003, c.89, s.68.