1. New Jersey Automobile Insurance Risk Exchange www.njaire.org

2. 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.

3. NJAIRE 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.

4. “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”

5. 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

6. NJAIRE Board Expertise
Actuarial
Claims
Financial
Legal
Operations
Regulatory
Statistical
Underwriting

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

8. 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)

9. 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

10. 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

11. 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

12. 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

14. NJAIRE References Plan of Operation Procedure Manual Exhibits Forms
Access

15. NJAIRE Central Processor - ISO
Data
Assessments
Reimbursements
Annual Cash Settlement
Website
Expenses
…and more

16. NJAIRE Auditors Withum, Smith & Brown CPA NJAIRE Internal Annual Audit
AIPSO
Insurance Company Compliance Audits
10 companies audited annually
Experienced (retired) auditors
Board review

17. . 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 ~ ~ 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.

18. Presenters
ISO
Mike McAuley
AIPSO
Jack O’Keefe

19. 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.

20. Feedback
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