N.J. Admin. Code § 11:4-2.8

Current through Register Vol. 56, No. 24, December 18, 2024

Section 11:4-2.8 - Violations and penalties

(a) Any failure to comply with the requirements of this subchapter shall be considered a violation of N.J.S.A. 17B:30-6. Such violations include, but are not limited to:

1. Any deceptive or misleading information set forth in sales material;

2. Failing to ask the applicant when completing the application pertinent questions regarding the possibility of financing or replacement as required by this subchapter;

3. The intentional incorrect recording of an answer;

4. Advising an applicant to respond negatively to any question regarding replacement in order to prevent notice to the existing insurer; or

5. Advising a policy or contract owner to write directly to the company in such a way as to attempt to obscure the identity of the replacing producer or company.

(b) Policy and contract owners have the right to replace policies or contracts after indicating in, or as a part of an application for new coverage, that replacement is not their intention; however, patterns of such action by policy or contract owners of the same producer shall be deemed prima facie evidence of the producer's knowledge that replacement was intended in connection with the identified transactions, and these patterns of action shall be deemed prima facie evidence of the producer's intent to violate this subchapter.

(c) Where it is determined that the requirements of this subchapter have not been met, the replacing insurer shall provide to the policy or contract owner an in force illustration, if available, or policy summary for the replacement policy, or available disclosure document for the replacement contract, and the notice regarding replacements in Appendix A or C.

(d) Any violation of this subchapter shall subject the violator to penalties that may include the revocation or suspension of a producer's license or a company's certificate of authority, monetary fines, and the forfeiture of any commissions or compensation paid to a producer as a result of the transaction in connection with which the violations occurred. In addition, where the Commissioner has determined that the violation was material to the sale, the insurer or producer may be required to make restitution to the insured, restore policy or contract values, and pay interest at the current rate set forth in the New Jersey Court Rules, R. 4:42-11, including any amount refunded in cash.

N.J. Admin. Code § 11:4-2.8

Repeal and New Rule, R.2004 d.414, effective 11/1/2004 (operative January 30, 2005).
See: 36 N.J.R. 2147(a), 37 N.J.R. 4930(a) .
Section was "Penalties".