The Professional Insurance Agents of New Jersey Inc. has told Assistant Commissioner Douglas A. Wheeler of the New Jersey Department of Banking and Insurance that it supports the department’s proposal to modernize its rate-filing methodology. It also offered a suggestion to encourage insurance companies to stay, and invite others to write, auto insurance in New Jersey.
“PIANJ recognizes the need to keep rate-making methodologies current and supports the department in this endeavor,” stated John D’Agostino Jr., CIC, president of PIANJ in a letter to Wheeler. “However, the department should revise its rules regarding the maximum expense calculation for combined commission and brokerage, acquisition and general expenses.”
The PIANJ bulletin stressed that “a more fair and accurate representation of rate-making calculations will be made if companies are allowed to use their actual expenses—rather than a weighted average, as the requirements now state—in their rate filings. This change in methodology would allow companies to make a reasonable profit and encourage auto insurance companies to write auto insurance in the state.”
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