N.J. Admin. Code § 11:3-8.7

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

Section 11:3-8.7 - Limitations on nonrenewal

(a) No insurer shall nonrenew a policy based on 11:3-8.4(a)1 i without having first conducted an investigation and reported the matter in accordance with the insurer's Fraud Detection and Prevention Plan.

(b) No insurer shall nonrenew a policy for failure to complete and return a renewal questionnaire without having first given written notice to the policyholder one full policy cycle prior to the issuance of the notice of nonrenewal that:

1. At the next renewal, the insurer shall send the policyholder a renewal questionnaire, which must be completed and returned; and

2. Failure to complete and return that renewal questionnaire may result in the nonrenewal of the policy.

(c) No insurer shall nonrenew a policy pursuant to 11:3-8.4(a)2 and 3:

1. In an amount in excess of 20 percent of the entire private passenger automobile insurance book of business of any one producer in force with the insurer at the end of the previous calendar year; and

2. Unless the insured or any other operator insured under the policy has individually, within five years prior to the expiration of the policy, two or more of the following events:

i. An at-fault accident as defined by 11:3-34.3;

ii. A motor vehicle violation for which four or more automobile insurance eligibility points accumulate under 11:3-34.5; or

iii. Had been required, but failed, to maintain the coverage required by 39:6A-3, without lapse.

(d) Nothing in these rules or their application shall be construed to authorize insurers to act in contravention of any applicable State or Federal law prohibiting discrimination on impermissible bases.

N.J. Admin. Code § 11:3-8.7

New Rule, R.1999 d.270, effective 8/16/1999.
See: 30 N.J.R. 2564(a), 31 N.J.R. 2383(b).
Former N.J.A.C. 11:3-8.6, Suspension of nonrenewals, recodified to N.J.A.C. 11:3-8.7.
Administrative correction.
See: 32 N.J.R. 809(b).
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).
Updated the N.J.A.C. references throughout; and in (b)2, inserted a period at the end;
Recodified from N.J.A.C. 11:3-8.6 and amended by R.2011 d.242, effective 9/19/2011.
See: 42 N.J.R. 1984(a), 43 N.J.R. 2525(a).
Rewrote (c)2iii; deleted former (d) through (e); and recodified former (f) as (d). Former N.J.A.C. 11:3-8.7, Suspension of renewals, recodified to N.J.A.C. 11:3-8.8.