P&CNJhard
Under N.J.S.A. 17:29A-5.6, how does DOBI determine whether a NJ private passenger auto insurer has earned 'excess profits' subject to refund or credit?
By measuring multi-year underwriting and investment results against a statutory profit benchmark, treating the surplus above the benchmark as 'excess'
BBy comparing a single calendar quarter's profit to the insurer's nationwide profit, without regard to any multi-year underwriting or investment benchmark
CBy polling NJ policyholders to identify dissatisfaction with premium levels and using the survey results as the sole statutory measure of excess profits
DBy using the gross-premium tax return as the sole measure of profitability, to the exclusion of underwriting and investment data over the statutory multi-year period
Why this is the answer
N.J.S.A. 17:29A-5.6 directs DOBI to measure NJ private passenger auto underwriting and investment profitability over a multi-year window against a statutory profit benchmark. Profits above the benchmark are 'excess' and must be returned to NJ policyholders by refund, credit, or rate-reduction improvement. Single-quarter snapshots, policyholder surveys, and gross-premium tax returns are not the legal measurement.
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