N.J. Admin. Code § 11:17A-1.7

Current through Register Vol. 56, No. 17, September 3, 2024

Section 11:17A-1.7 - Personal private passenger automobile insurance solicitation

(a) An insurance agent, or an insurance broker who has a brokerage relationship with an insurer, when soliciting personal private passenger automobile insurance, shall:

1. Upon request, submit an application for automobile insurance to the insurer selected by the applicant.

i. Where a producer who, pursuant to his or her agreement with an insurer, does not have authority to bind coverage immediately, receives a completed written application, the producer shall promptly transmit the application to the insurer. Nothing in this section shall be construed to permit an insurer to rescind any binding authority previously granted to its producers.

ii. Producers that transmit applications to insurers for underwriting review shall retain proof of such transmissions in order to memorialize the date upon which transmission occurred. Such proof may be in the form of:

(1) An official receipt of mailing which includes the applicant's name thereon;

(2) A copy of a facsimile transmission which contains the applicant's name and the date of transmission; or

(3) Any other manner from which proof and date of mailing can be verified;

2. Within 10 working days after receiving a declination (see N.J.A.C. 11:3-33) from an insurer to which a written application has been submitted, so advise the applicant in writing, unless the written declination was sent by the insurer to the applicant or the insured;

3. Where no written application has been made prior to declination, the agent or broker shall, if so requested by the applicant within 90 days from the date of denial, provide the applicant with a written explanation of the declination within 10 working days of the request. Such communication shall, when applicable, include the reasons why the coverage offered is with less favorable terms or conditions than those requested; and

4. Not bind coverage for automobile physical damage perils prior to inspection of the automobile by the insurer when the insurer requires such inspection pursuant to the provisions of N.J.A.C. 11:3-36.

(b) For the purpose of this section, the Commissioner may impose a civil penalty in an amount of up to $ 2,000 for the first violation and up to $ 5,000 for the second and each subsequent violation and any other penalty provided by law.

N.J. Admin. Code § 11:17A-1.7

New Rule, R.1992 d.189, effective 4/20/1992.
See: 23 N.J.R. 3199(a), 24 N.J.R. 1510(a).
Section was "Penalties."
Emergency Amendment R.1993 d.135, effective 3/1/1993. (operative March 8, 1993) (expires April 30, 1993.)
See: 25 N.J.R. 1290(a).
Binder requirements added to (a)3.
Adopted Concurrent Proposal, R.1993 d.238, effective 4/30/1993.
See: 25 N.J.R. 1290(a), 25 N.J.R. 2479(a).
Amended by R.1994 d.598, effective 12/5/1994.
See: 26 N.J.R. 3591(a), 26 N.J.R. 4777(a).
Amended by R.2000 d.44, effective 2/7/2000.
See: 31 N.J.R. 3583(a), 32 N.J.R. 499(a).
Amended by R.2008 d.380, effective 12/15/2008 (operative January 1, 2009).
See: 40 N.J.R. 3572(a), 40 N.J.R. 6970(b).
Rewrote (a).