New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IV - Financial Condition Of Insurer and Reports to Superintendent › Subchapter C - Fire, Marine, Casualty And Surety Insurers › Part 107 - Composition Of, And Allocation To, Expense Groups › Section 107.3 - Composition of expense groups

Current through Register Vol. 46, No. 28, July 10, 2024
The composition of each expense group shall be as
					 follows:
(a) Investment expenses.
				  Investment expenses shall comprise all expenses incurred wholly or partially in
				  connection with the investing of funds and the obtaining of investment income,
				  including related expenses incurred in the following activities: initiating or
				  handling orders and recommendations; doing research; pricing; appraising and
				  valuing; paying and receiving; entering and keeping general and detail records;
				  safe keeping; collecting, recording, calculating and accruing investment
				  income; general clerical, secretarial, office maintenance, supervisory and
				  executive duties; handling personnel, supplies, mail, etc.; and all other
				  activities reasonably attributable to the investing of funds and the obtaining
				  of investment income.
(b) Loss
				  adjustment expenses. Loss adjustment expenses shall comprise all expenses
				  incurred wholly or partially in connection with the adjustment and recording of
				  policy claims, including the totals of the operating expense classification,
				  claim adjustment services; the types of expenses included in claim adjustment
				  services, when the activities resulting in such types of expenses are performed
				  by employees; and including related expenses incurred in the following
				  activities: estimating amounts of claims; paying and receiving; entering and
				  keeping general and detail records; general clerical, secretarial, office
				  maintenance, supervisory and executive duties; handling personnel, supplies,
				  mail, etc.; and all other activities reasonably attributable to the adjustment
				  and recording of policy claims in connection with claims reported, paid, and
				  outstanding, and reinsurance thereon.
(c) Acquisition, field supervision and
				  collection expenses.
(1) Acquisition, field
				  supervision and collection expenses shall comprise all expenses incurred wholly
				  or partially in the following activities:
(i)
				  Soliciting and procuring business and developing the sales field.
(ii) Writing policy contracts, and checking
				  and directly supervising the work of policy writers.
(iii) Receiving and paying of premiums and
				  commissions; entering into or setting up records of premiums and commissions
				  receivable and payable for collection purposes; balancing and maintaining such
				  records; corresponding with and visiting insureds and producers for the purpose
				  of collecting premiums or adjusting differences; checking current accounts from
				  producers; auditing of records of delinquent agents; and services of collection
				  agencies. Do not include activities in connection with accounts receivable from
				  and payable to branch or other offices within the company.
(iv) Compiling and distributing expiration
				  lists, notices of premiums due, lists of premiums or premium balances
				  receivable and payable, contingent and other commission statements, production
				  statements for acquisition and field supervision purposes, and similar
				  data.
(v) Maintaining good will of
				  insureds and producers; activities of field men; contact work related to
				  acquisition, field supervision and collection; making contracts and agreements
				  with producers; and activities in connection with agency appointments and
				  replacements. Do not include: inspections of risks when carried on by personnel
				  employed by the insurance company, engaged full time in physical inspection of
				  risks and activities directly related thereto; audits for the purpose of
				  premium determination; and activities in connection with the adjustment of
				  policy claims.
(vi) Rendering
				  service to agents and other producers, such as providing office space,
				  personnel, telephone, etc., and obtaining agents' licenses. Do not include fees
				  paid for agents' licenses.
(vii)
				  Advertising and publicity of every nature related to acquisition, field
				  supervision and collection. In addition to applicable salaries, etc., include
				  the entire amount shown in the operating expense classification,
				  advertising.
(viii) Miscellaneous
				  activities of agents, brokers and producers other than employees, when
				  performed by them: inspections; quoting premiums; signing policies; examining
				  and mailing policies, applications and daily reports; compiling figures for
				  current accounts; correspondence and sundry bookkeeping and clerical
				  work.
(ix) Other activities
				  reasonably attributable to those operations listed in subparagraphs (i) to
				  (viii) of this paragraph, such as: keeping general and detail records; paying
				  and receiving; general clerical, secretarial, office maintenance, supervisory
				  and executive work; and handling personnel, supplies, mail, etc.