The reporting of individual policy experience through the Statistical Plan forms the basis of policy year experience (Schedule "Z").  After checking and processing, these detailed reports are used for various analyses, experience and retrospective ratings as well as for classification pure premiums relativities.  For each policy, these reports include the audited payrolls, premium rates charged, experience modification (if any) and all items affecting the cost of the coverage.  Each compensable accident is separately listed with the amount of incurred indemnity and medical losses.  Medical only cases costing less than $500 are aggregated to a total amount by classification.  Other medical only cases are listed separately.  Each report is valued by the carrier, as of the eighteenth month after the month in which the policy became effective and is filed with the Rating Bureau approximately twenty and one-half months after the inception month of the policy.  Tables VII through X flow from these data.

Calendar year Schedule "W" data, Exhibits A and B in the appendix, show the developments which occurred during 2006 with respect to both premiums and losses under all policies which have been effective since January 1, 1942.  These Exhibits illustrate the reason for retaining a long period of years in the Schedule "W" report.  The data show there is significant claim activity indicating that ultimate payments may be more or less than originally estimated.  Exhibits C and D in the appendix also flow from the Schedule "W" data. 

Statistics are not meaningful unless they have been subjected to quality analyses.  Such quality as respects the data filed through the Statistical Plan is in large measure dependent on whether payrolls have been audited properly and claims have been assigned to the proper classifications.  In this regard, an extensive test payroll audit program, and data quality process directed toward the classification of claims are in place.  Schedule "W" data can be filed electronically at the Rating Bureau Web Site (njcrib.com) using the Financial Data Reporting Application (FDRA).  FDRA subjects data to an extensive series of edits to assure the reasonableness of the data.  As a result of these ongoing quality control programs it is possible to have confidence in the reliability of the data used in the pricing of the insurance.

The Rating Bureau Web-Site also contains actuarial information, which is updated annually.  The latest paid and incurred policy and accident year loss development factors on an aggregate basis as well as data concerning the latest trend factor are some of the information available at the site.

STATISTICAL

Reports of policy year experience are received on a routine scheduled basis related to the policy effective date.  After the first report is filed, four subsequent reports are required at annual intervals.  These reports are necessary to establish and maintain appropriate classification pure premiums and in the calculation of individual risk ratings.  Approximately 99.3% are received via the NJCRIB – FTF electronic transmission method, 0.5% are received via magnetic tape and 0.2% are received in paper format.

The number of first reports received decreased from 221,098 for calendar year 2005 to 213,335 in calendar year 2006.  The number of subsequent reports received decreased from 35,694 in calendar year 2005 to 33,680 in calendar year 2006.  The number of correction reports received decreased from 41,693 in calendar year 2005 to 38,898 in calendar year 2006.