Chapter Ins 6

Include:

Salaries, wages and other compensation of janitors, caretakers, maintenance persons and agents paid in connection with owned real estate.

Cost of operating and maintaining owned real estate.

Cost of insurance in connection with owned real estate.

Cost of advertising in connection with owned real estate.

Ins 6.30(1)(b)20. 20. Real Estate Taxes

Include:

Taxes, licenses and fees on owned real estate.

Ins 6.30(1)(b)21. 21. Miscellaneous

Include: Expenses not listed as includable in other operating expense classifications, and not analogous thereto. Specifically, the following shall be included:

Cost of tabulating service when such service is rendered by outside organizations.

Amounts received and handled in accordance with the instruction “Income from Special Services”.

Donations to organized charities.

Differences between actual amounts paid, and amounts apportioned in accordance with the instruction “Joint Expenses”.

Ins 6.30(1)(b)22. 22. General Instructions in Connection With Operating Expense Classifications

Ins 6.30(1)(b)22.a. a. Joint Expenses

Whenever personnel or facilities are used in common by two or more companies, or whenever the personnel or facilities of one company are used in the activities of two or more companies, the expenses involved shall be apportioned in accordance with the regulations relating to Joint Expenses, and such apportioned expenses shall be allocated by each company to the same operating expense classifications as if the expenses had been borne wholly. Any difference between the actual amount paid, and the amount of such apportioned expenses shall be included in the operating expense classification “Miscellaneous”.

This instruction does not apply to the allocation of the following, which are covered by separate instructions herein:

Reinsurance commission and allowances (see Commission and Brokerage-Reinsurance Assumed and Ceded).

Commission and brokerage paid to managers and agents (see Commission and Brokerage-Direct).

Allowances to managers and agents (see Allowances to Managers and Agents).

Expenses allocable in accordance with the instruction “Income from Special Services”.

Ins 6.30(1)(b)22.b. b. Expenses for Account of Another

Whenever expenses are paid by one company for account of another, the payments shall not appear among the expenses reported by the former, and shall be included by the latter in the same expense classifications as if originally paid by it.

Ins 6.30(1)(b)22.c. c. Income from Special Services

Whenever an insurance company receives compensation for sales or services, such as loss adjustment or inspection not related to policies written by the company, and such compensation is not calculated as a joint expense reimbursement, the amount thereof shall be included in the operating expense classification “Miscellaneous”. Where an insurance company pays the compensation, allocation shall be made to the expense classification dictated by the nature of the expense.

This instruction is of limited applicability and does not apply to the allocation of the following, which are covered by separate instructions herein:

Reinsurance commission and allowances (see Commission and Brokerage-Reinsurance Assumed and Ceded).

Expenses incurred for the benefit of companies in the same group or fleet. Such expenses are covered by the instruction “Joint Expenses”.

Ins 6.30(1)(b)22.d. d. Analogous Items

The lists of expenses includable in the operating expense classifications are representative and do not exclude analogous items which are omitted from the lists.

Ins 6.30 Note INDEX
to s. Ins 6.30 (1)

Ins 6.30 Note The references are to subparagraphs in paragraph (b) of subsection (1).

Ins 6.30 Note Accident and loss prevention billed specifically — 6

Ins 6.30 Note Accident and loss prevention literature — 6

Ins 6.30 Note Accident and loss prevention organizations — 5

Ins 6.30 Note Accident insurance for employees — 9-a

Ins 6.30 Note Accounting societies, dues and subscriptions to — 12

Ins 6.30 Note Actuarial societies, dues and subscriptions to — 12

Ins 6.30 Note Adding machine tape — 15

Ins 6.30 Note Adjusters — 1-a

Ins 6.30 Note Adjustment services — 1

Ins 6.30 Note Advertising, operating expense classification — 4

Ins 6.30 Note Advertising, help wanted — 9-b

Ins 6.30 Note Advertising in connection with owned real estate — 19

Ins 6.30 Note Advertising required by law when only the minimum space required by law is taken — 18-d

Ins 6.30 Note Advertising required by law when more than the minimum space required by law is taken — 4

Ins 6.30 Note Advisory organizations — 5

Ins 6.30 Note Agents’ allowances, reimbursements and payments computed as percentage of premiums — 2-a

Ins 6.30 Note Agents’ allowances, reimbursements and payments not computed as percentage of premiums — 3

Ins 6.30 Note Agents’ licenses — 18-b

Ins 6.30 Note Allocated loss adjustment expenses — 1-a

Ins 6.30 Note Allowances to managers and agents, operating expense classification — 3

Ins 6.30 Note Alterations and repairs of leased premises — 13

Ins 6.30 Note Analogous items — 22-d

Ins 6.30 Note Analysis pads — 15

Ins 6.30 Note Appeal costs relating to claim adjustment — 1-a

Ins 6.30 Note Appraisals relating to claim adjustment — 1-a

Ins 6.30 Note Assessments for fire patrol — 18-a

Ins 6.30 Note Assessments of boards, bureaus and associations — 5

Ins 6.30 Note Associations, underwriting — 5

Ins 6.30 Note Attorneys’ fees relating to claim adjustment — 1-a

Ins 6.30 Note Attorneys’ fees — 17

Ins 6.30 Note Audit bureaus — 5

Ins 6.30 Note Audit of assureds’ records, operating expense classification — 7

Ins 6.30 Note Auditing relating to claim adjustment — 1-a

Ins 6.30 Note Auditing fees of independent auditors for auditing payrolls and other premium bases — 7

Ins 6.30 Note Auditing fees of independent auditors for examining records of home and branch offices — 17

Ins 6.30 Note Automobiles, depreciation, rent, repairs and expenses of — 12; insurance of — 10

Ins 6.30 Note Automobile license plates — 12

Ins 6.30 Note Bank charges for collection and exchange — 16

Ins 6.30 Note Billboards — 4

Ins 6.30 Note Binders and posts — 15

Ins 6.30 Note Board allowances, reinsurance — 2-b, 2-c

Ins 6.30 Note Boards, bureaus and associations, operating expense classification — 5

Ins 6.30 Note Bonds covering employees — 10

Ins 6.30 Note Bonds, premium cost, relating to claim adjustment — 1-a

Ins 6.30 Note Bonus to employees — 8

Ins 6.30 Note Booklets for accident and loss prevention — 6

Ins 6.30 Note Books, newspapers and periodicals including investment, tax and legal publications and services — 15

Ins 6.30 Note Branch office rent — 13

Ins 6.30 Note Broadcasts — 4

Ins 6.30 Note Brokerage to employees when the activities for which the commissions are paid are not a part of their duties as employees — 2-a

Ins 6.30 Note Brokerage to employees when the activities for which the commissions are paid are a part of their duties as employees — 8

Ins 6.30 Note Brokerage, direct — 2-a

Ins 6.30 Note Brokerage, reinsurance assumed — 2-b

Ins 6.30 Note Brokerage, reinsurance ceded — 2-c

Ins 6.30 Note Brokers’ allowances, reimbursements and payments computed as a percentage of premiums — 2-a

Ins 6.30 Note Brokers’ allowances, reimbursements and payments not computed as a percentage of premiums — 3