AGENTS BACK EXPENSE FORMULA:

The Professional Insurance Agents of New Jersey Inc. recently supported the New Jersey Department of Banking and Insurance’s proposal to change the method for calculating the maximum allowed expense limits for commission and brokerage, other acquisition and general expenses in auto insurance company rate filings. John A. Latimer, president of PIANJ, said his group supports the proposal because it believes the new method is “more equitable and will benefit companies by allowing them to file rates that more accurately reflect their actual expenses.” The current formula weights the average of the expense provisions of the 20 largest private passenger auto insurance companies using the same marketing method. The department’s changes would use the weighted average of all private-passenger automobile companies or groups using the same marketing method, plus an additional 5 percent.

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