Transcript gm_-_njaire_-_5-7-20.. - New Jersey Automobile Insurance Risk

New Jersey
Automobile Insurance
Risk Exchange
www.njaire.org
We are here to discuss and act on matters relating to the business
of the New Jersey Automobile Insurance Risk Exchange and not
to discuss or pursue the business interests of our individual
companies. We should proceed with caution and alertness
towards the requirements and prohibitions of federal and state
antitrust laws. We should not engage in discussions – either at
this meeting or in private conversations – of our individual
companies’ plans or contemplated activities. We should concern
ourselves only with the business of the New Jersey Automobile
Insurance Risk Exchange as set forth in the agenda for this
meeting. Only New Jersey Automobile Insurance Risk Exchange
matters may be discussed at New Jersey Automobile Insurance
Risk Exchange meetings and each company’s market plans
cannot be discussed.
NJAIRE - 1984 Inception
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Purpose – To provide premium equity to
carriers as a result of NJ dual liability
threshold
Occurs – when limited threshold in at fault
loss with unlimited threshold claimant.
Result – higher loss payout without benefit of
corresponding premium.
“The purpose of NJAIRE is to restore
premium equity to New Jersey
carriers when their limited lawsuit
threshold policyholders incur losses
with claimants who carry unlimited
lawsuit threshold liability coverage”
NJAIRE Governance
Thirteen Member Board of Directors
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All Directors must be New Jersey residents
New Jersey Banking and Insurance Commissioner
Three Public Members appointed by the Governor,
Senate President & Assembly Speaker
Eight Insurer Directors nominated by the Governor
with advice from NJDOBI Commissioner
Public Member nominated by the Governor
All nominees must be confirmed by the Senate
NJAIRE Board Expertise
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Actuarial
Claims
Financial
Legal
Operations
Regulatory
Statistical
Underwriting
NJAIRE Board Industry Representation
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AAA
Allstate
Attorneys (2)
Hanover
New Jersey D.O.B.I.
New Jersey Manufacturers
Plymouth Rock
State Farm
Travelers
NJAIRE Board of Directors
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Mary Bernadette Corrigan (Hanover)
Frank Coscia, Esq. (Schenck, Price, Smith & King, LLP)
Kevin Curry (Travelers)
Thomas DeFalco, Treasurer (New Jersey Manufacturers)
Thomas Gorecki, (Public Member)
Ryan Graham (Public Member)
Richard Hubschman, Esq. (Hubschman and Roman)
Mark Keenan (Allstate)
John McBride (AAA-NCNU)
Thomas Myers, Chairperson (Plymouth Rock)
Brian O’Loughlin (State Farm)
Sam Sackey (NJ Department of Banking & Insurance)
NJAIRE Governance
Representation
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Directors do not represent their company or firm
Two Directors represent trade group AIA
Two Directors represent trade group PCI
Two Directors represent non-affiliates
Two Directors represent NJ based insurers
Four Directors serve as public members
One (ex-officio) Director represents NJDOBI
NJAIRE Committees
Chaired by Board Members
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Actuarial Committee – Tom DeFalco, NJM
Assessment recommendations
 Annual interest rate
 Closeout years
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Audit Committee – Brian O’Loughlin, State Farm
Monitors insurance company compliance audits
 Oversees NJAIRE annual audit
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NJAIRE Committees
Chaired by Board Members
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Finance & Investment Committee
Frank Coscia Esq., Chair, Public Member
 Monitors banks
 Recommends safe investments
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Insurance & Contracts Committee
Mark Keenan, Chair, Allstate
 Oversees servicing agreements
 Monitors insurance coverage
NJAIRE Legal Counsel
M. Paige Berry, Esq.
Saul Ewing, LLP
Princeton, New Jersey
NJAIRE Operations
Donald E. Foth, General Manager
NJAIRE Office
25 State Highway 23 South
Franklin Boro, New Jersey 07416
NJAIRE Mailing Address
Post Office Box 712
Stockholm, New Jersey 07460
NJAIRE References
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Plan of Operation
Procedure Manual
Exhibits
Forms
Access
NJAIRE Central Processor - ISO
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Data
Assessments
Reimbursements
Annual Cash Settlement
Website
Expenses
…and more
NJAIRE Auditors
Withum, Smith & Brown CPA
NJAIRE Internal Annual Audit
AIPSO
Insurance Company Compliance Audits
10 companies audited annually
Experienced (retired) auditors
Board review
NJAIRE recommends that carriers maintain an
understanding of NJAIRE requirements, especially in
areas where staff turnover occurs. Self-audits are
also recommended to assure ongoing compliance.
Contact information is available on the NJAIRE
website ~ www.njaire.org ~ for anyone who needs
additional information.
The Board of Directors meets four times annually,
and carriers are welcome to attend Board meetings
as well as the annual meeting which is held in
conjunction with the November Board of Directors
meeting.
Presenters
ISO
Mike McAuley
AIPSO
Jack O’Keefe
Questions ~ Comments
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Go to the bottom right (Chat) section of your
screen and key your name and company.
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unmute phone lines and ask the inquirer to
present their question.
Please do not provide input unless recognized,
as there are many persons attending this
webinar.
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