(b) At least 30 days, but not more than 60 days, in advance of the end of the required policy period, an insurer shall mail or deliver a notice of intent to uptier to each first named insured that the insurer intends to move to a higher rated tier. Pursuant to section 2349, the number of policies moved from lower rated tiers to higher rated tiers in each of the insurer's rating territories for each calendar year shall be limited to three percent of the total number of private passenger automobile policies in force in that territory at last year-end. The three percent limitation shall be in addition to the two percent limitation provided for in section 3425(f).

1. (1) Each insurer shall keep a record of the following, on a territorial basis:

   1. (i) the number of new polices issued;
   2. (ii) the number of polices for which a notice of intent to uptier was issued and which continue after policy expiration;
   3. (iii) the number of polices for which a notice of intent to uptier was issued and do not continue after policy expiration; and
   4. (iv) the number of all other nonrenewals and conditional renewals.
2. (2) The insurer shall utilize the policy count data required by paragraph (1) of this subdivision to comply with the “two percent” and “three percent” limitations.
3. (3) The policy count data required by paragraph (1) of this subdivision shall form the basis of the annual statistical reports required pursuant to section 3425(l)(1).

(c)