N.J. Admin. Code § 11:4-8.6

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

Section 11:4-8.6 - Surplus and reserves

(a) Each special permit holder shall have and maintain segregated assets at least equal to the sum of:

1. The reserves on its outstanding agreements calculated in accordance with the provisions of N.J.S.A. 17B:19; and

2. A surplus equal to $ 100,000 or to ten per cent of the amount in paragraph 1 above, whichever is greater.

(b) In determining the reserves of any special permit holder, a deduction shall be made for all or any portion of an annuity risk which is lawfully reinsured by an authorized insurer, but such reinsurance shall not relieve a special permit holder from the requirement that the surplus shall be at least $ 100,000.

(c) The Commissioner may consider that each corporation or association in a group of two or more corporations and/or associations which has met all other requirements of this section has met the requirements as to the amount of segregated annuity fund assets, provided:

1. The segregated assets of each such organization shall equal at least 110 per cent of the sum of the reserves on its outstanding agreements calculated in accordance with the provisions of N.J.S.A. 17B:19;

2. The combined segregated assets of all such organizations, when considered as a unit, meet the requirements of this section concerning the amount of segregated assets;

3. The organizations enter into an agreement by which each organization pledges the full amount of its segregated annuity assets as liable for the payment of each annuity and all annuities issued under the agreement by each organization and all organizations in the group;

4. Such agreement shall be determined by the Commissioner to protect the public at least to the same extent as though all annuities were issued by a single organization;

5. No change may be made in such agreement and no organization may be added to or released from such agreement without the prior approval of the Commissioner; and

6. The Commissioner may require that, in addition to any other reports that he shall normally require from permit holders, the group of organizations file annually a consolidated report in order to demonstrate that the requirements of this section are met on a consolidated basis.

(d) Each member organization within the group will be subject to all requirements of the law and of this subchapter other than the requirement of $ 100,000 minimum surplus; this minimum must be satisfied by the group, however.

N.J. Admin. Code § 11:4-8.6

Amended by R.1985 d.94, effective 3/4/1985.
See: 16 New Jersey Register 3172(a), 17 New Jersey Register 598(b).
Added "N.J.S.A. 17B-19".
Recodified from N.J.A.C. 11:4-8.4 by R.2005 d.49, effective 2/7/2005.
See: 36 New Jersey Register 4623(a), 37 New Jersey Register 528(a).
Former N.J.A.C. 11:4-8.6, Annual report, recodified to N.J.A.C. 11:4-8.8.