N.J. Admin. Code § 11:1-38.5

Current through Register Vol. 56, No. 8, April 15, 2024

Section 11:1-38.5 - Payments by insurers to local relief associations

(a) Payment of the appropriate amount of funds to local relief associations by foreign and alien insurers transacting fire insurance in this State pursuant to N.J.S.A. 54:17-4 and 54:18-1 et seq. and by licensed surplus lines producers pursuant to N.J.S.A. 17:22-6.5 9, shall be made as follows:

1. Each foreign and alien insurer transacting fire insurance in this State shall annually notify the State Association with payment of the appropriate amounts due pursuant to (a)2 below of every locality in this State in which the insurer has fire insurance premium and the premium volume for each locality for the year immediately preceding.

2. The insurer shall, by March 1 of each year, pay to the State Association the total amount due for the year immediately preceding for all localities calculated at the rate set forth in N.J.S.A. 54:17-4 and 54:18-1 et seq.

3. The State Association shall then distribute the monies received from each insurer in the manner prescribed by 54:18-1 et seq. to each local relief association, based on each association's share based on the premium volume of each such insurer.

(b) In lieu of the procedures set forth in (a) above, an insurer may pay its obligation pursuant to 54:18-1 et seq. directly to each local association. Where an insurer utilizes the method of payment set forth in this subsection, in order to receive credit for such payment against its applicable premium tax for payments made, the insurer shall file with the Department a copy of the front and back of each cancelled check.

(c) Every licensed surplus lines producer shall follow the procedures for the remittance of premium taxes and funds to local associations set forth in N.J.A.C. 11:19-3.

N.J. Admin. Code § 11:1-38.5