N.J.A.C. 11:2 — INSURANCE GROUP (Subchapter 1 to 43)

Failure to comply with the provisions of this subchapter shall subject the offender to the penalties set forth under N.J.S.A. 17B:30-17 and any other penalty authorized by law. Notes N.J. Admin. Code § 11:2-23.9

(a) The purpose of this subchapter is to set forth standards to protect active duty service members of the United States Armed Forces from dishonest and predatory insurance sales practices by declaring certain identified practices to be false, misleading, deceptive or unfair. (b)…

This subchapter shall apply only to the solicitation or sale of any life insurance or annuity product by an insurer or insurance producer to an active duty service member of the United States Armed Forces. Notes N.J. Admin. Code § 11:2-23A.2

(a) This subchapter shall not apply to solicitations or sales involving: 1. Credit insurance; 2. Group life insurance or group annuities where there is no in-person, face-to-face solicitation of individuals by an insurance producer or where the contract or certificate does not in…

For the purposes of this subchapter, the following terms and phrases shall have the following meanings, unless the context clearly indicates otherwise: "Active duty" means full-time duty in the active military service of the United States and includes members of the reserve compo…

(a) The following acts or practices when committed on a military installation by an insurer or insurance producer with respect to the in-person, face-to-face solicitation of life insurance are declared to be false, misleading, deceptive or unfair: 1. Knowingly soliciting the purc…

(a) The following acts or practices by an insurer or insurance producer constitute corrupt practices, improper influences or inducements and are declared to be false, misleading, deceptive or unfair:1. Submitting, processing or assisting in the submission or processing of any all…

If any provision of this subchapter or the application thereof to any person or circumstance is held invalid for any reason, the invalidity shall not affect any other provisions or any other application of this subchapter which can be given effect without the invalid provisions o…

(a) The purpose of this subchapter is to improve the Department's surveillance of the financial position of insurers by requiring: 1. An annual audit by independent certified public accountants of the financial statements reporting the financial position and the results of operat…

(a) An insurer required to furnish the annual audited financial report shall require the independent certified public accountant to report in writing within five business days to the board of directors or its audit committee any determination by the independent certified public a…

(a) In addition to the annual audited financial report, each insurer shall file with the Commissioner a written communication as to any unremediated material weaknesses in its internal control over financial reporting noted during the audit. Such communication shall be prepared b…

(a) The accountant shall furnish the insurer in connection with, and for inclusion in, the filing of the annual audited financial report, a letter stating: 1. That the accountant is independent with respect to the insurer and conforms to the standards of the profession as contain…

(a) Every insurer required to file an audited financial report pursuant to this subchapter shall require the accountant to make available for review by the Commissioner, all the workpapers prepared in the conduct of his or her audit and any communications related to the audit bet…

(a) This section shall not apply to foreign or alien insurers licensed in this State or an insurer that is a SOX compliant entity or a direct or indirect wholly-owned subsidiary of a SOX compliant entity not otherwise required to establish a committee in accordance with N.J.S.A. …

(a) An insurer is exempt from the requirements of this section if: 1. The insurer has annual direct written and unaffiliated assumed premiums, including international direct and assumed premiums, but excluding premiums reinsured with the Federal Crop Insurance Corporation and Fed…

(a) No director or officer of an insurer shall, directly or indirectly: 1. Make or cause to be made a materially false or misleading statement to an accountant in connection with any audit, review or communication required under this subchapter; or 2. Omit to state, or cause anot…

(a) Every insurer required to file an audited financial report pursuant to this subchapter that has annual direct written and assumed premiums of $ 500,000,000 or more, excluding premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, shall prepa…

(a) Insurers having direct premiums written in this State of less than $ 1,000,000 in any calendar year and less than 1,000 policyholders or certificateholders of directly written policies nationwide at the end of such calendar year shall be exempt from this subchapter for such y…

(a) In the case of alien insurers, the annual audited financial report shall be defined as the annual statement of total business on the form filed by such companies with their domiciliary supervision authority duly audited by an independent chartered or similarly certified accou…

This subchapter shall apply to all insurers transacting business in the State of New Jersey except as provided at N.J.A.C. 11:2-26.18. Notes N.J. Admin. Code § 11:2-26.2 Amended by R.1993 d.68, effective 2/1/1993. See: 24 N.J.R. 1940(a), 24 N.J.R. 2708(a), 25 N.J.R. 588(a). Citat…

All documents submitted to the Commissioner pursuant to this subchapter are confidential and not public documents as defined in the Public Records Act, N.J.S.A. 47:1A-1 et seq. Notes N.J. Admin. Code § 11:2-26.20 Recodified by R.1993 d.68, effective 2/1/1993. See: 24 N.J.R. 1940(…

Failure to comply with the provisions of this subchapter may result in the imposition of penalties as provided by law. Notes N.J. Admin. Code § 11:2-26.21 Recodified by R.1993 d.68, effective 2/1/1993. See: 24 N.J.R. 1940(a), 24 N.J.R. 2708(a), 25 N.J.R. 588(a). Rule on penalties…

If any section of this subchapter is held to be invalid, the remaining parts of this subchapter are not to be affected. Notes N.J. Admin. Code § 11:2-26.22 Recodified from N.J.A.C. 11:2-26.21 by 53 N.J.R. 1085(b), effective 6/21/2021

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise. "Accountant" and "independent certified public accountant" means an independent certified public accountant or accounting firm in good s…

(a) All insurers (unless exempted pursuant to N.J.A.C. 11:2-26.18) shall have an annual audit by an independent certified public accountant and shall file an audited financial report with the Commissioner on or before June 1 for the year ended December 31 immediately preceding. T…

(a) The annual audited financial report shall reflect the financial position of the insurer as of the end of the most recent calendar year and the results of its operations, cash flows and changes in capital and surplus for such calendar year in conformity with statutory accounti…

(a) The Commissioner shall not recognize any person or firm as a qualified independent certified public accountant if the person or firm: 1. Is not in good standing with the American Institute of Certified Public Accountants (AICPA) and in all states in which the accountant is li…

(a) Each insurer required by this subchapter to file an annual audited financial report shall within 60 days after becoming subject to such requirement, register with the Commissioner in writing the name and address of the independent certified public accountant or accounting fir…

(a) An insurer may make written application to the Commissioner for approval to file audited consolidated or combined financial statements in lieu of separate annual audited financial statements if the insurer is part of a group of insurance companies which utilizes a pooling or …

Financial statements furnished pursuant to N.J.A.C. 11:2-26.5 shall be examined by the independent certified public accountant. The audit of the insurer's financial statements shall be conducted in accordance with generally accepted auditing standards. In accordance with Section …

(a) The purpose of this subchapter is to set forth the factors which the Commissioner shall consider in determining whether an insurer is in such condition as defined herein as to render the continuation of its business hazardous to its policyholders, creditors, or the general pu…

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise: AVR means the asset valuation reserve calculated for the purpose of completing the NAIC annual statement in accordance with its instruct…

(a) The Commissioner shall consider the following factors, either singly or in a combination of two or more, in determining whether an insurer is in a hazardous financial condition: 1. Adverse findings reported in financial condition and market conduct examination reports, audit …

(a) If the Commissioner determines that the continued operation of an insurer may be hazardous to its policyholders, creditors, or the general public in this State, the Commissioner may, upon such a determination, subject the insurer to administrative supervision pursuant to N.J.…

(a) A mortgage guaranty insurance company shall not transact any new business if the total outstanding liability under its aggregate insurance policies, as computed as set forth in N.J.S.A. 17:46A-3, exceeds 25 times its policyholders' surplus. (b) From February 1, 2011 until Jan…

(a) The purpose of these rules is to implement the provisions of N.J.S.A. 17:51B-1 et seq. by establishing procedures to be employed by insurers which cede risks to appropriate reinsurers and which assume the risk from the ceding insurers to whom these rules apply. (b) This subch…

(a) A letter of credit shall be clean, irrevocable, evergreen, and unconditional and issued or confirmed by a qualified United States financial institution. The letter of credit shall contain an issue date and date of expiration and shall stipulate that the beneficiary need only …

A ceding insurer may take credit for unencumbered funds withheld by the ceding insurer in the United States in connection with the reinsurance contract under which those funds are withheld, subject to withdrawal solely by the ceding insurer and under its exclusive control. Notes …

(a) Credit will not be granted to a ceding insurer for reinsurance effected with assuming insurers meeting the requirements at N.J.A.C. 11:2-28.3, 28.4, 28.5, 28.6, 28.7, 28.7A through 28.7E, or 28.8, unless the reinsurance agreement meets the following standards: 1. Includes a p…

(a) If an accredited or certified reinsurer ceases to meet the requirements for accreditation or certification, the Commissioner may, after notice and opportunity for hearing pursuant to the Administrative Procedure Act, N.J.S.A. 52:14B-1 et seq. and 52:14F-1 et seq., and the Uni…

(a) A ceding insurer shall take steps to manage its reinsurance recoverables proportionate to its own book of business. A domestic ceding insurer shall notify the Commissioner within 30 days after reinsurance recoverables from any single assuming insurer, or group of affiliated a…

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise: "Annual statement" means a statement showing an insurer's financial condition at the close of business on December 31 of the preceding y…

An insurer shall be permitted to take a credit for reinsurance ceded to an assuming insurer where the assuming insurer is licensed to transact business in this State as of the date of the ceding insurer's statutory financial statement, except as limited in accordance with N.J.A.C…

(a) An insurer shall be permitted to take a credit for reinsurance ceded to an assuming insurer where the assuming insurer is accredited as a reinsurer in this State as of the date of the ceding insurer's statutory financial statement. An accredited reinsurer is one which meets a…

(a) An insurer shall be permitted to take a credit for reinsurance ceded to an assuming insurer which, as of the date of the ceding insurer's statutory financial statement: 1. Is domiciled and licensed in, or in the case of a United States branch of an alien assuming insurer, is …

(a) An insurer shall be permitted to take a credit for reinsurance ceded to an assuming insurer where as of the date of the ceding insurer's statutory financial statement the assuming insurer meets the standards set forth in (a)1 and 2 below, in accordance with the procedures set…

(a) An insurer may be permitted to take a credit for reinsurance ceded to an assuming insurer which does not meet any of the requirements set forth at N.J.A.C. 11:2-28.3, 28.4, 28.5, 28.6, 28.7A, or 28.7E, but only with respect to the insurance of risks located in jurisdictions w…