The New Jersey Compensation Rating and Inspection Bureau received approval from the Department of Banking and Insurance for a rate revision of -5.3% to go into effect Jan. 1, 2022. The revision is applicable to new and renewal policies.
The NJCRIB distributed Circular Letter No. 2019 detailing this rate revision, along with other changes presented in Manual Amendment Bulletin No. 504. The rating bureau had filed for a decrease of 4.9% in rates and rating values, but the DOBI mandated a further reduction of 0.4%.
Rate level. The cumulative effect of all filed rating-element changes results in a final collectible premium level reduction of 5.3%. However, most individual classification rates will change based on the latest data reported in accordance with the statistical plan. The classification rates are published in Circular Letter No. 2019.
The elements included in the cumulative overall rate level are upward adjustments of 4.6% for benefit changes, and 3.6% for the loss adjustment expense, general expense, production expense, security fund and the NJCRIB expense. Countering these are a downward adjustment of 2.4% for loss experience and 10.5% for trend factor.
The average rate change by industry group is: Manufacturing -2.6%; Contracting -5.7%; Office & Clerical -4.3%; Goods & Services -5.4%; and Miscellaneous -7.1%.
There is no change in the $0.03 per unit of exposure Foreign Terrorism Risk Premium Charge and the $0.01 per unit of exposure Domestic Terrorism, Earthquakes and Catastrophic Industrial Accidents Premium Charge.
Classification relativities. The year 2022 begins with a total of 550 classifications, including maritime and federal employments. Seven of these do not carry a rate assignment and another eight of the rated classifications are left unchanged. Of the remaining classifications, 202 undergo increases and 333 undergo decreases. There is no change in rates for private residence employees.
Policy surcharges. There is a downward adjustment of the Second Injury Fund surcharge from 5.34% to 5.33% and the Uninsured Employers Fund surcharge remains at 0.0%.
Expense constant. The expense constant remains at $160 for all classifications, including residence employees.
Minimum premium. The minimum premium multiplier increases from 200 to 240, and the maximum minimum premium increases from $950 to $1,000.
Maximum/minimum payroll. The maximum weekly payroll to be used for active executive officers, individual proprietors, partners and LLC members changes from $2,640 to $3,050, and the minimum weekly payroll changes from $660 to $760. Also, the minimum yearly payroll for a member of a board of education changes from $6,860 to $7,900, and the minimum for other appointed or elected officers changes from $1,370 to $1,580.
Benefits. The maximum weekly disability benefit is increased from $969 to $1,065, and the minimum benefit is increased from $258 to $284. In the case of permanent partial disabilities, the range of maximum benefit will be from $284 to $1,065, with no change in the minimum weekly benefit of $35.
PPAP factor. The Plan Premium Adjustment Program minimum factor is applied to standard premiums in order to reflect the risks inherent in the residual market. This factor remains at 20%.
Schedule Rating Plan. The schedule rating credit and debit maximum remains at 25%.
Classifications. Payroll amounts have been revised in the footnotes of pertinent class codes.
Other changes. Included with the NJCRIB filing are changes to experience-rating factors/tables and retrospective rating values.