(609)
890-3406
To: All NJAIRE Member Companies
NJAIRE 2005 ANNUAL LETTER TO MEMBER COMPANIES
The purpose of this 2005 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, territory rates, assessment percentages, 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 NJAIRE Assessment Percentage
Beginning with first quarter 2005 assessments, which are based on third quarter data reporting, the assessment percentage used to determine your company’s monthly payments will be lowered to 17%.
Territory Rates
The
NJAIRE base rates will continue to be the Personal Automobile Insurance Plan
(PAIP) territory rates as of
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 1995 (Form #2)
The
final reporting of claims for accident year 1995 will be the fourth quarter of
2004. The final evaluation of these years
will take place in the Twentieth Annual Cash Settlement, evaluated as of 3/2005. Resubmissions for accident year 1995 will be
allowed until
NJAIRE Website
In 2005, 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.
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 Form for accident dates
prior to
The Reportable Claim Determination Forms can also be found in Adobe document format (.pdf) on the NJAIRE website.
Financial Transactions
For accident year 2005, the financial transactions based on the Form #4 experience will be carried out using a provisional assessment percentage of 17%, 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.
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 #2, Form #3 and Form #4) distinguish one call for statistics from another. For your convenience, this package includes copies of all call forms (Attachments 4, 5 & 6) you can use for your submissions. Call forms are also available on the NJAIRE website in Excel format (.xls). Note that the first column for Form #2, Form #3 and Form #4 reads "earned exposures" -- earned exposures must be reported for all accident years.
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 #2, Form #3 or Form #4. Completed call forms should be mailed or emailed to the NJAIRE Central Processor at this address:
Kimberly Savino (17-8)
Insurance Services Office, Inc.
Audits
In 2005, audits will continue to be performed. Any company that has been audited and had reporting errors detected will be notified of the corrective procedure required 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
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 5) 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.
Null Reporters
The
NJAIRE Response form (Exhibit 6) is for companies which are licensed in New
The
form has two response boxes.
Please note that this form must be received
by ISO by February 15, 2005. 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:
James Gilmartin
Insurance Services Office, Inc.
(201) 469-2327
or
Kimberly Savino
Insurance Services Office, Inc.
(201) 469-2317
for further contact information, visit the NJAIRE website at:
Sincerely,
William J. Clarke
General Manager
gmanager@njaire.org
Exhibit
1
2005 NJAIRE COMPANY FINANCIAL
TRANSACTION SCHEDULE
MONTHLY PAYMENT SCHEDULE
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COMPILED FIGURES REPORTS FOR: |
FACTOR TO MULTIPLY TIMES
THE CALCULATED ASSESSMENT CHARGE |
DATE DUE: |
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Second Quarter 2004 |
1/3 |
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Third Quarter 2004 |
1/3 |
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Third Quarter 2004 |
1/3 |
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Third Quarter 2004 |
1/3 |
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Fourth Quarter 2004 |
1/3 |
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Fourth Quarter 2004 |
1/3 |
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Fourth Quarter 2004 |
1/3 |
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First Quarter 2005 |
1/3 |
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First Quarter 2005 |
1/3 |
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First Quarter 2005 |
1/3 |
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Second Quarter 2005 |
1/3 |
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Second Quarter 2005 |
1/3 |
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Second Quarter 2005 |
1/3 |
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Exhibit
2
2005 NJAIRE STATISTICAL
REQUIREMENTS SCHEDULE
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DATA FOR: |
DUE: |
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Fourth Quarter 2004 |
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First Quarter 2005 |
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Second Quarter 2005 |
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Third Quarter 2005 |
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Fourth Quarter 2005 |
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Exhibit
3
PERSONAL AUTOMOBILE
INSURANCE PLAN
TERRITORY RATES THAT APPLY
TO THE ZERO DOLLAR TORT THRESHOLD EXPOSURES
|
Territory |
Zero Dollar Tort Threshold Territory Rate |
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001 |
1054 |
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002 |
1054 |
|
003 |
760 |
|
004 |
773 |
|
005 |
832 |
|
006 |
674 |
|
007 |
1054 |
|
008 |
935 |
|
010 |
700 |
|
011 |
747 |
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012 |
944 |
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013 |
1036 |
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014 |
768 |
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015 |
573 |
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016 |
859 |
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017 |
825 |
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019 |
1054 |
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022 |
773 |
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023 |
825 |
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024 |
656 |
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025 |
582 |
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026 |
573 |
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027 |
736 |
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031 |
773 |
|
038 |
1054 |
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039 |
629 |
|
040 |
768 |
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|
|
Exhibit
4
NEW
STATEMENT OF COMPLIANCE
(To be completed by the company’s CFO or other officer designated by the CFO)
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
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 Rules of Operations and the Accounting and Statistical Manual requirements of the New Jersey Automobile Risk Exchange.
Sincerely,
Date Signature
Title
Exhibit 5
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: |
Kim Savino Business Analyst ISO |
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 2005 |
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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 2005 |
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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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Telephone Number: |
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Mail to: |
Kim Savino Business Analyst ISO |
Note: Please
make copies of this form for use as needed.