N.J. Admin. Code § 11:1-11.2

Current through Register Vol. 57, No. 1, January 6, 2025

Section 11:1-11.2 - Fraudulent, coercive or dishonest practices, or incompetence, untrustworthiness or financial irresponsibility under N.J.S.A 17:22A-40(8)

(a) Any licensed insurance producer who is a shareholder or who is serving as an officer of record of a corporate licensee which declares insolvency, dissolves, ceases to do business or does not renew its insurance licenses primarily to avoid payment of fines or debts to insolvent insurers, other insurance licensees, insureds, guaranty associations or governmental entities is engaging in conduct demonstrating fraudulent, coercive or dishonest practices, or incompetence, untrustworthiness or financial irresponsibility under N.J.S.A. 17:22A-40(8).

(b) Any licensee engaging in the above conduct shall be subject to the usual penalties and may be prohibited from licensing of or association with any other incorporated licensee.

(c) A showing that the licensee has placed 10 per cent or more of the book of business of the moribund corporate licensee into a new corporation controlled by one or more persons associated with the prior corporation shall raise a presumption of violative conduct.

N.J. Admin. Code § 11:1-11.2

Amended by R.2006 d.307, effective 9/5/2006.
See: 37 N.J.R. 4156(a), 38 N.J.R. 3586(a).
Section was "Unworthiness and bad faith under N.J.S.A. 17:22-6.16(h) and 17B:22-27(12)". Rewrote (a).