New Jersey New Jersey Automobile Insurance Automobile Insurance

Risk ExchangeRisk Exchange

www.njaire.org

We are here to discuss and act on matters relating to the business We are here to discuss and act on matters relating to the business of the New Jersey Automobile Insurance Risk Exchange and not of the New Jersey Automobile Insurance Risk Exchange and not

to discuss or pursue the business interests of our individual to discuss or pursue the business interests of our individual companies. We should proceed with caution and alertness companies. We should proceed with caution and alertness

towards the requirements and prohibitions of federal and state towards the requirements and prohibitions of federal and state antitrust laws. We should not engage in discussions – either at antitrust laws. We should not engage in discussions – either at

this meeting or in private conversations – of our individual this meeting or in private conversations – of our individual companies’ plans or contemplated activities. We should concern companies’ plans or contemplated activities. We should concern ourselves only with the business of the New Jersey Automobile ourselves only with the business of the New Jersey Automobile

Insurance Risk Exchange as set forth in the agenda for this Insurance Risk Exchange as set forth in the agenda for this meeting. Only New Jersey Automobile Insurance Risk Exchange meeting. Only New Jersey Automobile Insurance Risk Exchange

matters may be discussed at New Jersey Automobile Insurance matters may be discussed at New Jersey Automobile Insurance Risk Exchange meetings and each company’s market plans Risk Exchange meetings and each company’s market plans

cannot be discussed.cannot be discussed.

NJAIRE - 1984 InceptionNJAIRE - 1984 Inception

Purpose – To provide premium equity to Purpose – To provide premium equity to carriers as a result of NJ dual liability carriers as a result of NJ dual liability thresholdthreshold

Occurs – when limited threshold in at fault Occurs – when limited threshold in at fault loss with unlimited threshold claimant.loss with unlimited threshold claimant.

Result – higher loss payout without benefit of Result – higher loss payout without benefit of corresponding premium.corresponding premium.

““The purpose of NJAIRE is to restore The purpose of NJAIRE is to restore premium equity to New Jersey premium equity to New Jersey

carriers when their limited lawsuit carriers when their limited lawsuit threshold policyholders incur losses threshold policyholders incur losses with claimants who carry unlimited with claimants who carry unlimited

lawsuit threshold liability coverage”lawsuit threshold liability coverage”

NJAIRE Governance NJAIRE Governance Thirteen Member Board of DirectorsThirteen Member Board of Directors

All Directors must be New Jersey residentsAll Directors must be New Jersey residents New Jersey Banking and Insurance CommissionerNew Jersey Banking and Insurance Commissioner Three Public Members Three Public Members appointedappointed by the Governor, by the Governor,

Senate President & Assembly SpeakerSenate President & Assembly Speaker Eight Insurer Directors Eight Insurer Directors nominatednominated by the Governor by the Governor

with advice from NJDOBI Commissionerwith advice from NJDOBI Commissioner Public Member Public Member nominatednominated by the Governor by the Governor All All nomineesnominees must be confirmed by the Senate must be confirmed by the Senate

NJAIRE Board ExpertiseNJAIRE Board Expertise

ActuarialActuarial ClaimsClaims FinancialFinancial LegalLegal OperationsOperations RegulatoryRegulatory StatisticalStatistical UnderwritingUnderwriting

NJAIRE Board Industry RepresentationNJAIRE Board Industry Representation AAAAAA AllstateAllstate Attorneys (2)Attorneys (2) HanoverHanover New Jersey D.O.B.I.New Jersey D.O.B.I. New Jersey ManufacturersNew Jersey Manufacturers Plymouth RockPlymouth Rock State FarmState Farm TravelersTravelers

NJAIRE Board of DirectorsNJAIRE Board of Directors• Mary Bernadette Corrigan (Hanover)Mary Bernadette Corrigan (Hanover)• Frank Coscia, Esq. (Schenck, Price, Smith & King, LLP)Frank Coscia, Esq. (Schenck, Price, Smith & King, LLP)• Kevin Curry (Travelers)Kevin Curry (Travelers)• Thomas DeFalco, Treasurer (New Jersey Manufacturers)Thomas DeFalco, Treasurer (New Jersey Manufacturers)• Thomas Gorecki, (Public Member)Thomas Gorecki, (Public Member)• Ryan Graham (Public Member)Ryan Graham (Public Member)• Richard Hubschman, Esq. (Hubschman and Roman)Richard Hubschman, Esq. (Hubschman and Roman)• Mark Keenan (Allstate)Mark Keenan (Allstate)• John McBride (AAA-NCNU)John McBride (AAA-NCNU)• Thomas Myers, Chairperson (Plymouth Rock)Thomas Myers, Chairperson (Plymouth Rock)• Brian O’Loughlin (State Farm)Brian O’Loughlin (State Farm)• Sam Sackey (NJ Department of Banking & Insurance)Sam Sackey (NJ Department of Banking & Insurance)

NJAIRE Governance NJAIRE Governance RepresentationRepresentation

Directors do Directors do notnot represent their company or firm represent their company or firm Two Directors represent trade group AIATwo Directors represent trade group AIA Two Directors represent trade group PCITwo Directors represent trade group PCI Two Directors represent non-affiliatesTwo Directors represent non-affiliates Two Directors represent NJ based insurersTwo Directors represent NJ based insurers Four Directors serve as public membersFour Directors serve as public members One (ex-officio) Director represents NJDOBIOne (ex-officio) Director represents NJDOBI

NJAIRE CommitteesNJAIRE CommitteesChaired by Board MembersChaired by Board Members

Actuarial Committee – Tom DeFalco, NJMActuarial Committee – Tom DeFalco, NJM Assessment recommendationsAssessment recommendations Annual interest rateAnnual interest rate Closeout yearsCloseout years

Audit Committee – Brian O’Loughlin, State FarmAudit Committee – Brian O’Loughlin, State Farm Monitors insurance company compliance auditsMonitors insurance company compliance audits Oversees NJAIRE annual auditOversees NJAIRE annual audit

NJAIRE CommitteesNJAIRE CommitteesChaired by Board MembersChaired by Board Members

Finance & Investment Committee Finance & Investment Committee

Frank Coscia Esq., Chair, Public MemberFrank Coscia Esq., Chair, Public Member Monitors banksMonitors banks Recommends safe investmentsRecommends safe investments

Insurance & Contracts Committee Insurance & Contracts Committee

Mark Keenan, Chair, AllstateMark Keenan, Chair, Allstate Oversees servicing agreementsOversees servicing agreements Monitors insurance coverageMonitors insurance coverage

NJAIRE Legal CounselNJAIRE Legal CounselM. Paige Berry, Esq.M. Paige Berry, Esq.

Saul Ewing, LLPSaul Ewing, LLP

Princeton, New JerseyPrinceton, New Jersey

NJAIRE OperationsNJAIRE OperationsDonald E. Foth, General ManagerDonald E. Foth, General Manager

NJAIRE OfficeNJAIRE Office

25 State Highway 23 South25 State Highway 23 South

Franklin Boro, New Jersey 07416Franklin Boro, New Jersey 07416

NJAIRE Mailing AddressNJAIRE Mailing Address

Post Office Box 712Post Office Box 712

Stockholm, New Jersey 07460Stockholm, New Jersey 07460

NJAIRE References NJAIRE References

Plan of OperationPlan of Operation Procedure ManualProcedure Manual ExhibitsExhibits FormsForms AccessAccess

NJAIRE Central Processor - ISONJAIRE Central Processor - ISO

DataData AssessmentsAssessments Reimbursements Reimbursements Annual Cash SettlementAnnual Cash Settlement WebsiteWebsite ExpensesExpenses ……and moreand more

NJAIRE Auditors NJAIRE Auditors

Withum, Smith & Brown CPAWithum, Smith & Brown CPA

NJAIRE Internal Annual AuditNJAIRE Internal Annual Audit

AIPSOAIPSO

Insurance Company Compliance AuditsInsurance Company Compliance Audits

10 companies audited annually10 companies audited annually

Experienced (retired) auditorsExperienced (retired) auditors

Board reviewBoard review

. .

NJAIRE recommends that carriers maintain an NJAIRE recommends that carriers maintain an understanding of NJAIRE requirements, especially in understanding of NJAIRE requirements, especially in areas where staff turnover occurs. Self-audits are areas where staff turnover occurs. Self-audits are also recommended to assure ongoing compliance.also recommended to assure ongoing compliance.

Contact information is available on the NJAIRE Contact information is available on the NJAIRE website ~ website ~ www.njaire.org ~ for anyone who needs ~ for anyone who needs additional information. additional information.

The Board of Directors meets four times annually, The Board of Directors meets four times annually, and carriers are welcome to attend Board meetings and carriers are welcome to attend Board meetings as well as the annual meeting which is held in as well as the annual meeting which is held in conjunction with the November Board of Directors conjunction with the November Board of Directors meeting. meeting.

PresentersPresenters

ISOISO

Mike McAuleyMike McAuley

AIPSOAIPSO

Jack O’KeefeJack O’Keefe

Questions ~ CommentsQuestions ~ Comments

• Go to the bottom right (Chat) section of your Go to the bottom right (Chat) section of your screen and key your name and company.screen and key your name and company.

• At certain times during each presentation we’ll At certain times during each presentation we’ll unmute phone lines and ask the inquirer to unmute phone lines and ask the inquirer to present their question.present their question.

• Please do not provide input unless recognized, Please do not provide input unless recognized, as there are many persons attending this as there are many persons attending this webinar.webinar.

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