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 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 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 Actuarial Claims Financial Legal Operations Regulatory Statistical Underwriting

NJAIRE Board Industry Representation AAA Allstate Attorneys (2) Hanover New Jersey D.O.B.I. New Jersey Manufacturers Plymouth Rock State Farm Travelers

NJAIRE Board of Directors 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 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 Actuarial Committee – Tom DeFalco, NJM Assessment recommendations Annual interest rate Closeout years Audit Committee – Brian O’Loughlin, State Farm Monitors insurance company compliance audits Oversees NJAIRE annual audit

NJAIRE Committees Chaired by Board Members Finance & Investment Committee Frank Coscia Esq., Chair, Public Member Monitors banks Recommends safe investments Insurance & Contracts Committee Mark Keenan, Chair, Allstate Oversees servicing agreements Monitors insurance coverage

NJAIRE Legal Counsel NJAIRE Operations Donald E. Foth, General Manager 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 Plan of Operation Procedure Manual Exhibits Forms Access

NJAIRE Central Processor - ISO 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 Go to the bottom right (Chat) section of your screen and key your name and company. At certain times during each presentation we’ll 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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