New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 3 - AUTOMOBILE INSURANCE › Subchapter 20 - REPORTING FINANCIAL DISCLOSURE AND EXCESS PROFITS › Appendix - APPENDIX

Current through Register Vol. 56, No. 14, July 15, 2024
EXCESS PROFIT EXHIBITS--INSTRUCTIONS
In all Exhibits, dollars are stated as whole numbers, and ratios are expressed as decimals to the third decimal place. Where a sum is expressed as a ratio, the ratio required is the ratio of the years' dollar figures and not the sum of the individual years' ratios.
INPUT SHEET
The Input Sheet consists of three sections as defined by the State Page Exhibit of the Annual Statement:
Section A is for the Personal Injury Protection and Medical Payments coverages (PIP), as reported in line 19.1.
Section B is for the Bodily Injury Liability coverage (BI) and the other Liability coverages, including Property Damage Liability coverage and uninsured and underinsured motorist coverages (PD), as reported in line 19.2.
Section C is for Comprehensive, Collision and other miscellaneous Physical Damage coverages (Phys Dam) as reported in line 21.1.
Enter the data in the appropriate sections as described below. The instructions apply uniformly to each of the sections except where noted.
In this appendix, "Year 0" refers to the year in which the report is filed, "Year -1" refers to the first year prior to the year the report is filed, "Year -2" refers to the second year prior to the year the report is filed, and so on. For example, for reports filed in 2011, "Year -1" is 2010 and "Year -2" is 2009.
Exhibit One
All data in Exhibit One is from the State Page Exhibit of the Annual Statement for CY Year -1 through Year -9.
-- Col (1): Direct Written Premium
Item 1: Written Premium as stated on the Annual Statement.
Item 2: Data for Motorcycles, Off-Road Vehicles, Motor Homes, Antique Autos, Excess Liability and Finance & Service Charges, that is included as part of Item 1 above.
Item 4: That portion of UCJF/PLIGA assessments paid by the insurer (less any reimbursements to the insurer) to the UCJF/PLIGA relating to private passenger automobile insurance (applicable for PIP and Other Liability only).
-- Col (2): Direct Earned Premium
Item 1: Earned Premium as stated on the Annual Statement.
Item 2: same definition as in Col (1).
Item 4: same definition as in Col (1).
-- Col (3A): Paid Dividends
Item 1: Paid Dividends, including Excess Profit Refunds as stated on the Annual Statement.
Item 2: Data for Motorcycles, Off-Road Vehicles, Motor Homes, Antique Autos and Excess Liability, that is included as part of Item 1 above.
-- Col (3B): Declared, but Unpaid Dividends
Item 1: Declared, but Unpaid Dividends, including Excess Profit Refunds (this item is not included on the State Page Exhibit).
Item 2: same definition as in Col (3A).
-- Col (4): Direct Unearned Premium Reserve
Item 1: Unearned Premium Reserve as stated on the Annual Statement.
Item 2: same definition as in Col (3A).
Item 4: same definition as in Col (1).
-- Col (5): Direct Unpaid Loss
Item 1: Unpaid Loss (Case plus Bulk/IBNR) as stated on the Annual Statement.
Item 2: same definition as in Col (3A).
Item 4: Excess Medical Benefits reimbursed to the company from the UCJF relating to private passenger automobile insurance (applicable for PIP and for 2003 and prior only).
-- Col (6): Direct Unpaid Defense & Cost Containment Expense
Item 1: Unpaid Defense & Cost Containment Expense (Case plus Bulk/IBNR) as stated on the Annual Statement.
Item 2: same definition as in Col (3A).
Exhibit Two
Exhibit Two develops losses and loss adjustment expenses.
Exhibit Two, Part One
Enter Cumulative Case Incurred Loss+D&CCE information as of 15 months through as of 99 months (51 months for Property Damage and Physical Damage) in the space provided in the required spreadsheet for each section. On the Other Liability section, enter Bodily Injury and Property Damage losses separately. Uninsured Motorist may be included with BI or split between BI and PD.
Exhibit Two, Part Two
Enter the tail factor for development beyond 99 or 51 months. If the tail factor is greater than one, provide support for the factor.
Exhibit Two, Part Three
Data for this section come from the countrywide Insurance Expense Exhibit, Part III for CYs Year -1 to Year -9. Use line 19.1 for both PIP and Other Liability and line 21.1 for Physical Damage.
-- Col (1): Direct Incurred Loss
-- Col (2): Direct Incurred Defense & Cost Containment Expense
-- Col (4): Direct Incurred Adjusting & Other Expenses
Exhibit Two, Part Four
All items in Part Four are calculated from Parts One through Three
Exhibit Three
All data in Exhibit Three, Col (1) except for Net Catastrophe Reinsurance Expense is from Part III of the countrywide Insurance Expense Exhibit (IEE) for CYs Year -1 through Year -7 and is for Liability (BI/UM/PD/PIP) and Physical Damage coverages only.
-- Col (1), Item 1: Direct Written Premium
-- Col (1), Item 2: Direct Earned Premium
-- Col (1), Item 3: Direct Other Acquisition Expense
-- Col (1), Item 4: Direct General Expense
-- Col (1), Item 5: Direct Commission & Brokerage Expense
-- Col (1), Item 7: Direct Taxes, Licenses & Fees
-- Col (1), Item 9: Net Catastrophe Reinsurance Expense (provide an exhibit to substantiate the expense) (this item is optional)
State the insurer's marketing method, "D" for a direct writer, "C" for a captive agency, and "I" for an independent agency. If multiple marketing methods are used within a group, use the method of the largest company within the group.
All data in Exhibit Three, Col (3), except for Items 9 and 10, is from the State Page Exhibit for CYs Year -1 through Year -7.
-- Col (3), Item 5: Direct Commission & Brokerage Expense
-- Col (3), Item 7: Direct Taxes, Licenses & Fees
-- Col (3), Item 9: Net Catastrophe Reinsurance Expense (provide an exhibit to substantiate the expense) (this item is optional)
-- Col (3), Item 10: LAD Fees Paid
Exhibit Four
All data in Exhibit Four is countrywide for CYs Year -1 through Year -8 and is for all lines of insurance written by the insurer.
Items in this section come from the Exhibit of Net Investment Income, Earned During Year column
-- Item 1: Interest, Dividends and Real Estate Income, line 10
-- Part 1, Item 2.1: Investment Expense Incurred, line 11
-- Part 1, Item 2.2: Depreciation on Real Estate, line 14
-- Part 1, Item 2.3: Unaffiliated Preferred Stock, line 2.1
-- Part 1, Item 2.4: Affiliated Preferred Stock, line 2.11
-- Part 1, Item 2.5: Unaffiliated Common Stock, line 2.2
-- Part 1, Item 2.6: Affiliated Common Stock, line 2.21
-- Item 2.7, Derivative Instruments, line 7
-- Part 1, Item 2.7: Other Invested Assets, line 8
-- Part 1, Item 2.8: Real Estate for Company's Own Occupancy, the portion of line 4 that is for the company's own occupancy
-- Items in Part 2, Item 4 come from the Assets Page, Assets Current Year column
-- Part 2, Item 1.1: Bonds, line 1
-- Part 2, Item 1.2: Mortgage Loans on Real Estate, line 3.1 plus 3.2
-- Part 2, Item 1.3: Properties Held (except that portion occupied by the company), line 4.2 plus line 4.3
-- Part 2, Item 1.4: Contract Loans, line 6
-- Part 2, Item 1.5: Cash, Cash Equivalents, and Short Term Deposits, line 5
Exhibit Five
All data in Exhibit Five is countrywide for CYs Year -1 through Year -7 and is for all lines of insurance written by the insurer.
Part 1, Item 1: Agents Balance is Item 13.1, Uncollected Premiums and Agents' Balances in the Course of Collection (Premiums and Considerations), from the Assets Page, Assets Current Year column.
Part 1, Item 2: Unearned Premium Reserve is Item 9, Unearned Premiums, from the Liabilities, Surplus, and Other Funds Page.
Exhibit Six
All data in Exhibit 6 is for New Jersey business only and is for the CYs Year 0 through Year -16 and is for all coverages combined.
Item 1: List any excess profit refund paid in the applicable CYs.
Item 2: List any excess profit carry forward used in the applicable AYs. Any initial allocation made to a particular AY shall not exceed the amount of excess profit generated by that AY as calculated in the report.
Exhibit Seven
All data in Exhibit 7 is for New Jersey business only and is for the CYs Year 0 through Year -16 and is for all coverages combined.
Item 1: List any extraordinary loss paid in the applicable CYs. The amount to be listed is the latest available development (i.e. for Year -1 to Year -7, the current evaluation, and for Year -8 to Year -16, the evaluation at 7 years).
Item 2: List any extraordinary loss carry forward used in the applicable AYs. Any initial allocation made to a particular AY shall not exceed the amount of excess profit generated by that AY as calculated in the report.
Exhibit Eight
All data in Exhibit 8 is for the New Jersey business only and is for the CY Year 0 through Year -16 and is for all coverages combined.
Item 1: List any funds reinvested into New Jersey in the applicable CYs.
Item 2: List any reinvestment carry forward used in the applicable AYs. Any initial allocation made to a particular AY shall not exceed the amount of excess profit generated by that AY as calculated in the report.
Exhibit Nine
All data on Exhibit 9, except for the Item below, is generated by other exhibits. Item 4 applies only to the Other Liability section.
Item 4: Enter the AIRE Code(s) for all companies that are assigned to the insurer.
Item 4A: Enter the AIRE Assessment Allocation for each Accident Year as reported on the NJ AIRE Annual Cash Settlement Report. Data for AY Year 0 shall be the company's best estimate. Data for AY Year -1 shall be the amount for Company Share. Data for AY Year -2 and subsequent shall be the amount for the later evaluation.
Item 4B: Enter Investment Income for each Accident Year as reported on the NJ AIRE Annual Cash Settlement True-Up Report. Data for AY Year 0 shall be the company's best estimate.
Item 4C: Enter Projected Ultimate Assessment as reported on the NJ AIRE Cash Settlement Report. Data for AY Year 0 shall be the company's best estimate.
Item 20: Enter the insurer's After-Tax Target Return on Surplus, After-Tax Investment Income on Surplus, and Premium to Surplus Ratio. If using the same formula as in the latest approved New Jersey rate filing, then list the filing number and page reference in the space provided (or attach a copy of the referenced pages). If using the same formula as in the latest approved New Jersey rate filing but with updated values, then list the filing number and page reference in the space provided (or attach a copy of the referenced pages) and provide support for the updated values. If using a different formula, based on an approved rate filing, than used in this spreadsheet, provide the filing's profit loading (list the final result in the After-Tax Target Return on Surplus, show zero in After-Tax Investment Income on Surplus, and show one for the Premium to Surplus Ratio), and list the filing number and page reference in the space provided (or attach a copy of the referenced pages).
Item 23: Enter the development adjustment for Year -8 to Year -11. If the adjustment is greater than zero, justification must be provided. This item is optional.
EXHIBIT ONE
Exhibit One removes UCJF and PLIGA Assessments, Excess Medical Benefit Reimbursements and other exclusions from Statewide premiums, losses and allocated loss adjustment expenses.
For all columns as defined in the Input Sheet, Exhibit One,
Item 1 is from the Input Sheet
Item 2 is from the Input Sheet.
Item 3 is Item 1-Item 2.
Item 4 is from the Input Sheet
Item 5 is from the Input Sheet, Exhibit 7, Item 1 (Column 3 only)
Item 6=Item 3-Item 5.
EXHIBIT TWO
Exhibit Two calculates development factors for Case Incurred Loss and D&CCE for each coverage.
For each Part 2, any development factor that results in a division by zero shall instead not be considered in the calculation of loss development factors.
Part 1
Evaluations are at 15, 27, 39, 51, 63, 75, 87 and 99 months for BI and PIP coverages and at 15, 27, 39 and 51 months for PD and Phys Dam coverages.
This part is from the Input Sheet.
Part 2
Development factors are through 87-99 months for BI and PIP coverages and through 39-51 months for PD and Phys Dam coverages.
-- AY Year -2 @ 15-27 months = Part 1, AY Year -2 @ 27 months / Part 1, AY Year -2 @ 15 months.
-- AY Year -3 @ 15-27 months = Part 1, AY Year -3 @ 27 months / Part 1, AY Year -3 @ 15 months.
-- AY Year -3 @ 27-39 months = Part 1, AY Year -3 @ 39 months / Part 1, AY Year -3 @ 27 months.
-- And so on through AY Year -8 @ 87-99 months for BI coverages and through AY Year -8 @ 39-51 months for PD and Phys Dam coverages.
For BI and PIP coverages:
-- Col (A), is the straight average of all development factors, excluding the maximum and minimum for 15-27, 27-39, 39-51 and 51-63 months and the straight average of all development factors for 63-75, 75-87 and 87-99 months.
-- Col (A), Tail Factor @ 99 months to ultimate factor entered in the Input Sheet, if greater than one, otherwise it is the greater of one and the square root of the product of Col (A) @ 75-87 months and Col (A) @ 87-99 months.
-- Col (B) Tail Factor: Insurers with less than 99 months of data cannot use a tail factor that is unreasonable, relative to the development factors provided for the available months. After 99 months, tail factors greater than 1.00 must be justified.
-- Col (B) @ 87 months to ultimate = Col (B), Tail Factor x Col (A) @ 87-99 months.
-- Col (B) @ 75 months to ultimate = Col (B) @ 87 months to ultimate x Col (A) @ 75-87 months.
-- Col (B) @ 63 months to ultimate = Col (B) @ 75 months to ultimate x Col (A) @ 63-75 months.
-- And so on through 15 months to ultimate.
For PD and Phys Dam coverages:
-- Col (A) is the straight average of all non-zero development factors, excluding the maximum and minimum.
-- Col (A), Tail Factor @ 51 months to ultimate factor entered in the Input Sheet, if greater than one, otherwise it is the greater of one and the square root of the product of Col (A) @ 27-39 months and Col (A) @ 39-51 months.
-- Col (B) Tail Factor: Insurers with less than 51 months of data cannot use a tail factor that is unreasonable, relative to the development factors provided for the available months. After 51 months, tail factors greater than 1.00 must be justified.
-- Col (B) @ 39 months to ultimate = Col (A) @ 39-51 months.
-- Col (B) @ 27 months to ultimate = Col (B) @ 39 months to ultimate x Col (A) @ 27-39 months.
-- Col (B) @ 15 months to ultimate = Col (B) @ 27 months to ultimate x Col (A) @ 15-27 months.
Part 3
-- Col (1) is Incurred Loss from the Input Sheet.
-- Col (2) is Incurred Defense & Cost Containment Expense (D&CCE) from the Input Sheet.
-- Col (3) = Col (1) + Col (2).
-- Col (4) is Incurred Adjusting & Other Expense from the Input Sheet.
-- Col (5) = Col (4) / Col (3).
Part 4
Development is for AYs Year -1 through Year -7 for BI and PIP coverages and for AYs Year -1 through Year -4 for PD and Phys Dam coverages.
-- Col (1), AY Year -1 = Part 1, AY Year -1 @ 15 months.
-- Col (1), AY Year -2 = Part 1, AY Year -2 @ 27 months.
-- And so on through AY Year -7 for BI and PIP coverages and through AY Year -4 for PD and Phys Dam coverages.
-- Col (2), AY Year -1 = Part 2, Col (B) @ 15 months to ultimate.
-- Col (2), AY Year -2 = Part 2, Col (B) @ 27 months to ultimate.
-- And so on through AY Year -7 for BI and PIP coverages and through AY Year -4 for PD and Phys Dam coverages.
-- Col (3) = the straight average of the corresponding year and each of the previous two years plus one, subject to a minimum of 1.050 and a maximum of 1.300.
-- Col (4) = Col (1) x Col (2) x Col (3).
EXHIBIT THREE
Exhibit Three, Part 1 shows countrywide direct premiums and expenses from Part III of the statutory Insurance Expense Exhibit. Exhibit Three includes each of the seven years immediately preceding the year of submission.
Exhibit Three, Part 2 shows New Jersey direct premiums and expenses from statutory Page 14 for each of the seven years immediately preceding the year of submission.
-- Part 1, Col (1), Items 1 through 5 are Direct Written Premium, Direct Earned Premium, Direct Other Acquisition Expense, Direct General Expense, and Direct Commission & Brokerage respectively, from the Input Sheet.
-- Part 1, Col (1), Item 7 is Direct Taxes, Licenses, & Fees from the Input Sheet.
-- Part 1, Col (1), Item 8 = 1/2 x (Item 3 + Item 4) + Item 6 x (Item 3 + Item 4) / (Item 3 + Item 4 + Item 5) + Item 5 + Item 7.
-- Part 1, Col (1), Item 9 is Net Catastrophe Reinsurance Expense from the Input Sheet.
-- Part 1, Col (2), Item 3 = Col (1), Item 3 / Col (1), Item 2.
-- Part 1, Col (2), Item 4 = Col (1), Item 4 / Col (1), Item 2.
-- Part 1, Col (2), Item 5 = Col (1), Item 5 / Col (1), Item 1.
-- Part 1, Col (2), Item 7 = Col (1), Item 7 / Col (1), Item 1.
-- Part 1, Col (2), Item 8 = Col (1), Item 8 / Col (1), Item 2.
-- Part 1, Col (2), Item 9 = Col (1), Item 9 / Col (1), Item 1.
-- Part 2, Col (3), Item 1 = Exhibit 1, Col (1), Item 3.
-- Part 2, Col (3), Item 2 = Exhibit 1, Col (2), Item 3.
-- Part 2, Col (3), Item 3 = Col (3), Item 2 x Col (2), Item 3.
-- Part 2, Col (3), Item 4 = Col (3), Item 2 x Col (2), Item 4.
-- Part 2, Col (3), Item 5 is from the Input Sheet.
-- Part 2, Col (3), Item 6a = Part 2, Col (3), Sum of Items 3-5.
-- Part 2, Col (3), Item 6b is the expense cap based on the insurer's marketing method calculated in accordance with N.J.A.C. 11:3-16.
-- Part 2, Col (3), Item 6 = Item 6b-Item 6a if positive, and zero otherwise.
-- Part 2, Col (3), Item 7 is from the Input Sheet.
-- Part 2, Col (3), Item 8 = 1/2 x (Item 3 + Item 4) + Item 6 x (Item 3 + Item 4) / (Item 3 + Item 4 + Item 5) + Item 5 + Item 7.
-- Part 2, Col (3), Item 9 = Col (2), Item 9 x Col (1), Item 1.
-- Part 2, Col (3), Item 10 is from the Input Sheet.
-- Part 2, Col (4), Item 3 = Part 1, Col (2), Item 3.
-- Part 2, Col (4), Item 4 = Part 1, Col (2), Item 4.
-- Part 2, Col (4), Item 5 = Col (3), Item 5 / Col (3), Item 1.
-- Part 2, Col (4), Item 6a = Part 2, Col (4), Sum of Items 3-5.
-- Part 2, Col (4), Item 6b is the expense cap based on the insurer's marketing method calculated in accordance with N.J.A.C. 11:3-16.
-- Part 2, Col (4), Item 6 = The larger of Item 6a and Item 6b.
-- Part 2, Col (4), Item 7 = Col (3), Item 7 / Col (3), Item 1.
-- Part 2, Col (4), Item 8 = Col (3), Item 8 / Col (3), Item 2.
Part 2, Col (4), Item 9 = Part 1, Col (2), Item 9.
Part 2, Col (4), Item 10 = Col (3), Item 10 / Col (3), Item 1.
EXHIBIT FOUR
Exhibit Four is based on data from the countrywide statutory annual statement for each of the eight calendar years covered by this report for all lines written by the insurer.
Items 1 and 2.1 through 2.9 are from the Input Sheet.
Item 2 = the sum of Items 2.1 through 2.9.
Item 3 = Item 1 - Item 2.
Items 4.1 through 4.5 are from the Input Sheet.
Item 4 = the sum of Items 4.1 through 4.5.
Item 5 = the average of Item 4 for the current year and the previous year.
Item 6 = Item 3.
Item 7 = Item 5.
Item 8 = Item 6 / Item 7.
EXHIBIT FIVE
Exhibit Five shows actual investment income in each of the seven calendar years covered by this report for all lines written by the insurer. All items are the sum of each section of the corresponding items.
-- Items 1 and 2 are from the Input Sheet.
-- Item 3 = Item 1 / Item 2, with a maximum of 1.0.
-- Item 4 = Exhibit 3, Col (3), Item 7.
-- Item 5 = Exhibit 3, Col (3), Item 1.
-- Item 6 = Item 4 / Item 5, with a maximum of 1.0.
-- Item 7a for Year -1 = Exhibit 1, CY Year -2, Col (4), Item 3.
-- Item 7a for Year -2 = Exhibit 1, CY Year -3, Col (4), Item 3.
-- Item 7a for Year -3 = Exhibit 1, CY Year -4, Col (4), Item 3.
-- And so on for Item 7a for Year -4 to Year -7.
-- Item 7b for Year -1 = Exhibit 1, CY Year -1, Col (4), Item 3.
-- Item 7b for Year -2 = Exhibit 1, CY Year -2, Col (4), Item 3.
-- Item 7b for Year -3 = Exhibit 1, CY Year -3, Col (4), Item 3.
-- And so on for Item 7b for Year -4 to Year -7.
-- Item 7 = (Item 7a + Item7b) /2.
-- Item 8 = Item 7 x (1 - Item 3 - Item 6) if positive, and zero otherwise.
-- Item 9a for Year -1 = Exhibit 1, CY Year -2, Col (7), Item 3 - Exhibit 1, CY Year -2, Col (7), Item 4.
-- Item 9a for Year -2 = Exhibit 1, CY Year -3, Col (7), Item 3 - Exhibit 1, CY Year -3, Col (7), Item 4.
-- Item 9a for Year -3 = Exhibit 1, CY Year -4, Col (7), Item 3 - Exhibit 1, CY Year -4, Col (7), Item 4.
-- And so on for Item 9a for Year -4 to Year -7.
-- Item 9b for Year -1 = Exhibit 1, CY Year -1, Col (7), Item 3 - Exhibit 1, CY Year -1, Col (7), Item 4.
-- Item 9b for Year -2 = Exhibit 1, CY Year -2, Col (7), Item 3 - Exhibit 1, CY Year -2, Col (7), Item 4.
-- Item 9b for Year -3 = Exhibit 1, CY Year -3, Col (7), Item 3 - Exhibit 1, CY Year -3, Col (7), Item 4.
-- And so on for Item 9b for Year -4 to Year -7.
-- Item 9 = (Item 9a + Item 9b) / 2.
-- Item 10a for Year -1 = Exhibit 1, CY Year -2, Col (10), Item 4.
-- Item 10a for Year -2 = Exhibit 1, CY Year -3, Col (10), Item 4.
-- Item 10a for Year -3 = Exhibit 1, CY Year -4, Col (10), Item 4.
-- And so on for Item 10a for Year -4 to Year -7.
-- Item 10b for Year -1 = Exhibit 1, CY Year -1, Col (10), Item 3.
-- Item 10b for Year -2 = Exhibit 1, CY Year -2, Col (10), Item 3.
-- Item 10b for Year -3 = Exhibit 1, CY Year -3, Col (10), Item 3.
-- And so on for Item 10b for Year -4 to Year -7.
-- Item 10 = (Item 10a + Item 10b) /2.
-- Item 11 = Exhibit 2, Part 3, A&OE Factor.
-- Item 12 = (Item 9 + Item 10) x Item 11.
-- Item 13 = Item 8 + Item 12.
-- Item 14 = Exhibit 4, Item 8, 7 Year Total.
-- Item 15 = Item 13 x Item 14.
EXHIBIT SIX
Exhibit Six shows the excess profits paid in each of the last 17 CYs and carry forward used in each of the last 23 AYs by coverage along with the total.
Item 1 is the excess profit paid by the company as stated in the Input Sheet.
Item 2.1 through 2.3 are the excess profit carry forwards used in the applicable AYs as stated in the Input Sheet.
Item 2 is the total of Items 2.1 through 2.23.
Item 3 = Item 1 - Item 2.
EXHIBIT SEVEN
Exhibit Seven shows the extraordinary loss incurred and amount reinvested into New Jersey in each of the last 17 CYs and carry forward used in each of the last 23 AYs by coverage along with the total.
-- Item 1 is the extraordinary loss incurred by the company as stated in the Input Sheet. For Year -1 through Year -7, the values shall be those values calculated in the previous year's report. For Year -8 through Year -15, the value shall be that value calculated when that year was last used in the excess profit calculation.
-- Items 2.1 through 2.23 are the extraordinary loss carry forwards used in the applicable AYs as stated in the Input Sheet.
-- Item 2 is the total of Items 2.1 through 2.23.
-- Item 3 = Item 1 - Item 2.
EXHIBIT EIGHT
Exhibit Eight shows the amount reinvested into New Jersey in each of the last 17 CYs and carry forward used in each of the last 23 AYs by coverage along with the total.
-- Item 1 is the amount reinvested into New Jersey by the company as stated in the Input Sheet.
-- Items 2.1 through 2.23 are the reinvestment carry forwards used in the applicable AYs as stated in the Input Sheet.
-- Item 2 is the total of Items 2.1 through 2.23.
-- Item 3 = Item 1 - Item 2.
EXHIBIT NINE
Exhibit Nine uses the data developed in Exhibits One through Eight to calculate excess profit and any extraordinary loss for AYs Year -7 through Year -1, as well as a seven-year total. This exhibit is on all coverage combined basis. All items in Exhibits 1-3 are the sum of the corresponding sections for each item.
-- Item 1 = Direct CY Written Premium Net of UCJF, Exhibit 1, Col (1), Item 3 - Exhibit 1, Col (1), Item 4.
-- Item 2 = Direct CY Earned Premium Net of UCJF, Exhibit 1, Col (2), Item 3 - Exhibit 1, Col (2), Item 4.
-- Item 3 = Dividends excluding Refund of Excess Profit, Exhibit 1, Col (3), Item 6.
-- Item 4 = Net AIRE, Item 4A + Item 4B - Item 4C from the Input Sheet.
-- Item 5 = Direct CY Earned Premium, Item 2-Item 3 + Item 4.
-- Item 6 = Direct AY Ultimate Loss & LAE, Exhibit 2, Part 4, Col (4).
-- Item 7 = Direct Commission & Brokerage Expense, Exhibit 4, Col (3), Item 5.
-- Item 8 = Direct Other Acquisition Expense, Exhibit 4, Col (3), Item 3.
-- Item 9 = Direct General Expense, Exhibit 4, Col (3), Item 4.
-- Item 10 = Additional Allowable Expense, Exhibit 4, Col (3), Item 6.
-- Item 11 = Direct Taxes, Licenses, & Fees, Exhibit 4, Col (3), Item 7.
-- Item 12 = Net Catastrophe Insurance, Exhibit 4, Col (3), Item 9.
-- Item 13 = LAD Fees Paid, Exhibit 4, Col (3), Item 10.
-- Item 14 = Total Expenses, Sum of Items 7-13.
-- Item 15 = Underwriting Income, Item 5-Item 6-Item 14.
-- Item 16 = Target After-Tax Operating Return on Surplus, Item 2 x (After-Tax Target Return on Surplus - After-Tax Investment Income on Surplus) / Premium to Surplus Ratio / (100%-35%), from the Input Sheet.
-- Item 17 = Actual Investment Income Earned on Policyholder Supplied Funds, Exhibit 5, Item 15.
-- Item 18 = Actuarial Gain, Item 15 - Item 16 + Item 17.
-- Item 19 = Total Development Adjustment. For the seven-year total is from the Input Sheet. Item 19 for each individual year is one-seventh of the seven-year total.
-- Item 20 = Total Actuarial Gain, Item 18-Item 19, for the seven-year total only.
-- Item 21 = Additional Non-Excessive Profit Allowance, Item 2 x Additional Non-Excessive Profit Allowance.
-- Item 22 = Gross Excess Profit (Loss), Item 20-Item 19, for the seven-year total only.
-- Item 23 = Exhibit 6, Excess Profit Total Column.
-- Item 24 = Exhibit 7, Extraordinary Loss Total Column.
-- Item 25 = Exhibit 8, Reinvestment Total Column.
-- Item 26 = Amount to be Reinvested into New Jersey, is the amount of qualified reinvestment into the New Jersey automobile insurance market on an all coverages combined basis only to be committed as part of the filing of this report. Provide a plan for the funds that are to be spent.
-- Item 27 = Net Excess Profit (Loss), Item 22 - Item 23 - Item 24 - Item 25 - Item 26, for the seven-year total only.
-- Item 28 = (Item 27 x -1) - Item 26 if Item 27 is less than zero, and zero otherwise.
-- Item 29a = Item 10.
-- Item 29b = Item 21.
-- Item 29 = Item 29a + Item 29b.
-- Item 30 = Net Actual Loss, Item 28 - Item 29 if positive, and zero otherwise.
-- Item 31 = Extraordinary Loss, Item 30 - Item 2 x 5 percent for each calendar-accident year if positive, and zero otherwise.