Opinion ID: 1933492
Heading Depth: 2
Heading Rank: 1

Heading: The Background to the March 24, 1992, Order

Text: To facilitate an understanding of this case, we set forth a limited chronology of some of the events that led to the Order under review. We intend nothing more than a sketch of those proceedings and express no view on their effect on any later proceedings involving the MTF.  March 12, 1990  The Fair Act becomes law.  May 15, 1990  The Commissioner assigns to the companies their initial shares of depopulation quotas. He warns the companies that any member company that has not written its apportionment share shall be precluded from nonrenewing policies for a 12-month period in accordance with N.J.S.A. 17:29C-7.1, as amended; that quarterly reports of exposures written would be required; and that any member company which fails to comply with the provision of the Program shall be subject to penalties as authorized by law, including the provisions of N.J.S.A. 17:30E-17.  October 1, 1990  MTF begins operations; Commissioner orders 10.3% increase in MTF rates over JUA rates; first quota period passes without achievement of 68% voluntary-market target.  October 26, 1990  Commissioner notifies companies of April 1, 1991, apportionment shares.  January 5, 1991  Commissioner adopts Mandatory Depopulation Assignment Plan (MDAP), effectuating statutory authority to assign unfulfilled quota exposures to member companies.  January 17, 1991  MTF seeks 28% increase in rates. (The Fair Act did not begin to eliminate flat charges and RMECs until April 1991.)  January 24, 1991  Commissioner issues MDAP orders to forty-four companies, informing them that they would be assigned exposures because of their failure to meet October 1, 1990, quotas. The companies later appeal.  February 15, 1991  Commissioner informs companies that Appellate Division has stayed his MDAP orders and that no assignments would be made until the court had rendered its final decision.  April 1, 1991  Second depopulation-quota period passes.  May 10, 1991  Commissioner grants 18.6% rate increase, to be effective June 15, 1991. That increase yielded 12.3% in revenues.  May 20, 1991  Appellate Division renders its decision on the January 24, 1991, MDAP orders, affirming the orders in part and invalidating the orders in part. In re Assignment of Exposures, supra, 248 N.J. Super. 367, 591 A. 2d 631.  October 1, 1991  Third depopulation quota period passes.  November 14, 1991  Commissioner issues quota shares for April 1, 1992, quota period.  November 19, 1991  Appellate Division acts on Commissioner's May 10, 1991, rate orders; reflects on cascading events; orders Commissioner to develop rate-setting process; accepts Commissioner's commitment to operate the MTF on a no-profit, no-loss basis; orders Commissioner to act speedily under brief time table to set appropriate rates and to respond to legitimate demands for relevant records. In re May 10, 1991 Orders, supra, 252 N.J. Super. 260, 599 A. 2d 906.  December 20, 1991  In response to Appellate Division's November 19, 1991, decision, Commissioner increases MTF rates 14.9%, effective January 15, 1992, for new and renewal policies; announces intention to increase rates further.  December 31, 1991  Commissioner reassigns exposures under modified MDAP; companies appeal the assignments.