Q:  Can the June 15, 2020 deadline to provide notification to policyholders of the amount of the refund or adjustment and to make an initial premium refund or other adjustment to a policyholder be extended?

A:  To the extent possible, insurers should follow the deadlines to provide the premium refund and notice to policyholders as set forth in Bulletin No. 20-22.  For those insurers that need additional time, insurers may provide the required notification to policyholders and refund or other adjustment no later than July 1, 2020.

Q:  Can the Department extend the June 1, 2020 deadline for an insurer to submit its basis and supporting documentation that it should not be subject to the terms of Bulletin No. 20-22?

A:  To the extent possible, an insurer should follow the deadline as set forth in Bulletin No. 20-22.  For those that need additional time, an insurer who contends that it should not be subject to the terms of Bulletin No. 20-22 shall submit its basis for such contention and supporting documentation no later than June 15, 2020.

Order No. A20-03 FAQs

Q:  Who is required to submit data regarding New Jersey claim activity and New Jersey premium collection activity for the following three time periods: a) January 1, 2020 to March 21, 2020; b) March 22, 2020 to the date of the report; and c) the same time period as provided in b) however for 2019, as set forth in Order No. A20-03 (“data report”)?

A:  Insurers of private passenger automobile insurance, commercial automobile insurance, workers’ compensation insurance, commercial multiple peril insurance, commercial liability insurance, medical malpractice insurance, and any other line of coverage where the measures of risk have become substantially overstated as a result of the COVID-19 pandemic, which on an insurer group basis had more than $20,000,000 in New Jersey written premium for 2019 for all property/casualty combined are required to submit the data reports.  To calculate the $20,000,000 threshold, only New Jersey written premium should be considered. 

Q:  Can the data report deadlines be modified so that they are submitted on a monthly basis rather than bi-weekly?

A:  Yes, the data reports deadlines are modified.  Instead of bi-weekly filings, insurers shall file the data reports on a monthly basis on the following dates:  July 15, August 15, September 15, and October 15.  The data in each report shall be the most current available through the preceding month’s end.

Q:  Is there a template to submit the New Jersey claim activity and New Jersey premium collection activity as required in Order No. A20-03?

A:  No, there is no template.  Insurers may provide the information that is readily available to them in the format that is most appropriate for evaluating their specific books of business.

Q:  Are only insurers that are offering premium refunds required to submit the data reports required in Order No. A20-03? 

A:  No, insurers writing affected lines must submit the data reports regardless of whether they are offering a premium refund.  Specifically, insurers writing the following lines are required to file the data report (assuming on a group basis they meet the threshold as set forth in the Order):  private passenger automobile insurance, commercial automobile insurance, workers’ compensation insurance, commercial multiple peril insurance, commercial liability insurance, medical malpractice insurance, and any other line of coverage where the measures of risk have become substantially overstated as a result of the COVID-19 pandemic.

Q:  Who is required to submit a report containing all actions taken, and contemplated future actions, to reduce premium in response to or consistent with Bulletin No. 20-22, as set forth in Order No. A20-03, paragraph 2 (“premium reduction report”)?

A:  The following must submit the premium reduction reports:  all insurer groups of the following lines of insurance: private passenger automobile insurance, commercial automobile insurance, workers’ compensation insurance, commercial multiple peril insurance, commercial liability insurance, medical malpractice insurance, and any other line of coverage where the measures of risk have become substantially overstated as a result of the COVID-19 pandemic; the New Jersey Personal Automobile Insurance Plan (“PAIP”); and the New Jersey Commercial Auto Insurance Plan (“CAIP”).

Q:  Can the premium reduction report deadlines be modified?  Currently the first report is due June 1, 2020.

A:  Yes, the premium reduction report deadlines are modified.  Instead of being filed on the first of the month, insurers shall file the premium reduction reports on a monthly basis on the following dates:  July 15, August 15, September 15, and October 15.  The information provided in each report shall reflect activity through the preceding month’s end.

Q:  Is there a template to submit the premium reduction report as required in Order No. A20-03, numbered paragraph 2?

A:  No, there is no template.  Insurers may provide the information that is readily available to them in the format that is most appropriate for evaluating their specific books of business. 

Q:  Are only insurers that are offering premium refunds required to submit the premium reduction reports?  

A:  No, insurers writing affected lines must submit the data reports regardless of whether they are offering a premium refund.  Specifically, insurers writing the following lines are required to file the premium reduction report data report:  private passenger automobile insurance, commercial automobile insurance, workers’ compensation insurance, commercial multiple peril insurance, commercial liability insurance, medical malpractice insurance, and any other line of coverage where the measures of risk have become substantially overstated as a result of the COVID-19 pandemic; the PAIP; and the CAIP.