N.J. Admin. Code § 11:2-33.4

Current through Register Vol. 56, No. 21, November 4, 2024

Section 11:2-33.4 - Renewals

(a) Any certificate holder which applies for renewal shall submit the following so that it is received by the Commissioner not later than 60 days prior to the expiration of its current certificate:

1. A completed "Statement by Employer Exempted From Insuring Liability For Compensation" as set forth in Exhibit D in the Appendix incorporated herein by reference;

2. A supplementary statement of outstanding death or disability claims as set forth in Exhibit E in the Appendix incorporated herein by reference for the calendar year immediately preceding the expiration date of the certificate;

i. The certificate holder shall provide the name, address and telephone number of the person who actually completed the supplementary statement, and shall provide the location of the claim records utilized in the preparation of the statement.

3. A copy of the certificate of renewal of excess insurance;

4. A financial statement for the fiscal year immediately preceding the expiration date of the certificate which is certified by an independent certified public accountant to present fairly, in accordance with generally accepted accounting principles, and statutory accounting principles, where applicable, the financial condition of the certificate holder;

5. A certification that the certificate holder recognizes that it may be subject to examination by the Commissioner as required pursuant to (e) below;

6. The renewal fee as set forth in 11:1-32.4(b)13; and

7. Any other information that is materially different from the information provided in the original application or from the information provided in the last renewal period.

(b) In addition to the renewal fee set forth in (a)6 above, upon the initial renewal of its certificate the certificate holder shall be assessed and shall pay upon demand the amount necessary to reimburse the Department for expenses incurred in obtaining a risk assessment report on the certificate holder from a rating agency as determined by the Commissioner.

1. The requirement in (b) above shall not apply to any certificate holder that was required to submit a risk assessment report as part of the initial application pursuant to 11:2-33.3(f).

2. After the initial submission of the risk assessment report pursuant to 11:2-33.3(f) or 33.4(b), the Department may obtain a risk assessment report on the certificate holder and assess the certificate holder the costs of obtaining such report as set forth herein if the Commissioner determines that the certificate holder's financial condition may have deteriorated, or an event occurs which is reasonably likely to cause the certificate holder's financial condition to deteriorate as provided at (e) below.

(c) After the submission of the application for renewal, the Commissioner may require a surety bond, or an increase in the penal sum of an existing surety bond, in an amount determined by the Commissioner if he or she deems it necessary to ensure that the certificate holder satisfies the requirements for the issuance of a certificate set forth in 34:15-77 and this subchapter.

(d) Upon approval of the application for renewal, the Commissioner shall issue a new certificate.

(e) If the Commissioner determines that the certificate holder's financial condition may have deteriorated, or an event occurs which is reasonably likely to cause the certificate holder's financial condition to deteriorate, he or she may conduct such further examination of the certificate holder as he or she deems necessary to ensure that the certificate holder continues to satisfy the requirements for the issuance of a certificate set forth in 34:15-77 and this subchapter.

1. In determining whether to conduct such an examination pursuant to this section, the Commissioner shall consider the following factors, without limitation:

i. A major loss suffered by the certificate holder over the previous year or a trend of losses over several years;

ii. A significant decrease in the certificate holder's bond rating over the previous year or a trend of decreases over the past several years;

iii. A significant increase in claims payments by the certificate holder to employees; or

iv. Major environmental litigation or asbestosis litigation to which the certificate holder has or may become subject.

2. The examination may consist of an examination at the certificate holder's offices conducted by the Commissioner's designee; a review of such additional information as the Commissioner may request, including, but not limited to, a risk assessment report as set forth in (b) above, and a statement of opinion by a qualified actuary attesting to the adequacy of reserves for outstanding death or disability claims that meets the requirements of N.J.A.C. 11:1-21; or both.

3. The costs of any examinations shall be borne by the certificate holder.

N.J. Admin. Code § 11:2-33.4

Administrative Correction.
See: 25 New Jersey Register 4179(a).