N.J. Admin. Code § 11:1-10.8
Current through Register Vol. 56, No. 21, November 4, 2024
Section 11:1-10.8 - Requirements upon admission(a) Applicants contemplating the writing of homeowners or comprehensive personal liability polices in the State of New Jersey shall be required to afford coverage against liability for the payment of any obligation which the policyholder may incur to an injured domestic servant, or household employee, or the dependents thereof, pursuant to the provisions of the Workers' Compensation Law of the State of New Jersey. The Compensation, Rating and Inspection Bureau shall be informed by the Department accordingly.(b) Applicants who wish to have their Certificate of Authority limited to "reinsurance" only, may disregard the regulatory requirements concerning membership in the Compensation, Rating and Inspection Bureau identified in 11:1-10.6(d).(c) In clarification of 11:2-29.5(a)1 i, if an applicant is granted authority to transact private passenger automobile insurance, the approval shall provide that if the applicant (insurer) later seeks to withdraw from transacting such business pursuant to N.J.A.C. 11:2-29, the period of time which such insurer must seek to place its business with a replacement carrier, which shall begin on the date of the Commissioner's approval of the plan of orderly withdrawal, shall be based on the time between the date of issuance of the certificate of authority and the date of the filing of a complete plan of orderly withdrawal as set forth in 11:2-29.4, as follows: 1. For insurers authorized to transact business up to two years, the period shall not exceed one year;2. For insurers authorized to transact business beyond the period in (c)1 above up to four years, the period shall not exceed two years;3. For insurers authorized to transact business beyond the period set forth in (c)2 above up to five years, the period shall not exceed three years;4. For insurers authorized to transact business beyond the period set forth in (c)3 above up to six years, the period shall not exceed four years; and5. For insurers authorized to transact business beyond the period set forth in (c)4 above, the period shall be established by the Commissioner pursuant to 11:2-29.5(a)1 i, but shall not exceed five years.(d) The provisions set forth in (c) above shall also apply to any private passenger automobile insurer seeking to withdraw on or after November 20, 1995. However, the provisions set forth in (c) above shall not apply to any insurer authorized or admitted to transact business acting as an approved replacement carrier for an insurer which has withdrawn from transacting private passenger automobile insurance pursuant to N.J.A.C. 11:2-29. If such replacement carrier seeks to withdraw from transacting private passenger automobile insurance, the time period over which such insurer shall be required to seek to place its business with an acceptable replacement carrier shall be governed solely by 11:2-29.5(a)1 i, without regard to (c) above.(e) As a condition of approving the application for admission, the Commissioner may limit the applicant's authority to write business, including a limitation on the amount of premium volume the applicant may write, for a period not to exceed five years, consistent with the applicant's corporate business plan of operation submitted pursuant to 11:1-10.6(a)16 and other applicable laws. In determining whether to limit the applicant's authority, the Commissioner shall consider all relevant factors, including, but not limited to: 1. The amount of capital and surplus of the applicant;2. The resources available to service the business to be transacted; and3. The applicant's proposed marketing methods and resources.(f) In the case of private passenger automobile insurance, any limitation imposed pursuant to (e) above shall be based solely on a determination that exceeding such limitation would result in the insurer being or becoming in an unsafe or unsound financial condition, as determined consistent with the criteria set forth in 17:33B-19 and 17:33B-20.(g) An insurer shall not limit its writings pursuant to any premium volume limitation imposed pursuant to (e) or (f) above until the insurer notifies the Department that it is approaching such limitation and the Department notifies the insurer to so limit its writings.N.J. Admin. Code § 11:1-10.8
Amended by R.1995 d.604, effective 11/20/1995.
See: 27 N.J.R. 2854(a), 27 N.J.R. 4717(c).
Administrative Correction.
See: 27 N.J.R. 4894(a).
Amended by R.2003 d.209, effective 5/19/2003.
See: 35 N.J.R. 66(a), 35 N.J.R. 2182(a).
In (b), deleted "and the completion of a consumer suitability study for health insurance", amended NJAC reference.