New Jersey Administrative Code

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…

(a) Pursuant to N.J.S.A. 17:51B-2.g, the Commissioner shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer not meeting the requirements set forth at N.J.A.C. 11:2-28.3, 28.4, 28.5, or 28.6 that has been certified as a reinsurer in this State at al…

(a) The Commissioner shall issue a written notice to an assuming insurer that has made application and been approved as a certified reinsurer. Included in such notice shall be the rating assigned the certified reinsurer in accordance with N.J.A.C. 11:2-28.7A. The Department shall…

(a) If, upon conducting an evaluation under this section with respect to the reinsurance supervisory system of any non-United States assuming insurer, the Commissioner determines that the jurisdiction qualifies to be recognized as a qualified jurisdiction, the Commissioner shall …

(a) If an applicant for certification has been certified as a reinsurer in an NAIC accredited jurisdiction, the Commissioner may defer to that jurisdiction's certification, and may defer to the rating assigned by that jurisdiction, if the assuming insurer submits a properly execu…

(a) Pursuant to N.J.S.A. 17:51B-2.e, the Commissioner shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer that is licensed to write reinsurance by, and has its head office or is domiciled in, a reciprocal jurisdiction, and which meets the other r…

(a) An insurer shall be permitted to take a reduction from liability for reinsurance ceded to an assuming insurer not meeting the requirements at N.J.A.C. 11:2-28.3, 28.4, 28.5, 28.6, 28.7, or 28.7A through 28.7E in an amount which does not exceed the liabilities carried by the c…

(a) An admitted asset or a reduction from liability for reinsurance ceded to an unauthorized assuming insurer pursuant to N.J.A.C. 11:2-28.8 shall be permitted only when the requirements set forth below and in N.J.A.C. 11:2-28.1 0 and 28.11 are met. 1. The beneficiary, the granto…

(a) The purpose of this subchapter is to establish the requirements and procedures by which insurers may undertake an orderly withdrawal from the business of insurance in this State, thereby preventing or minimizing adverse effects upon the insurer's policyholders; preventing or …

Notes N.J. Admin. Code § 11:2-29.10 Recodified to N.J.A.C. 11:2-29.9 by R.2008 d.220, effective 8/4/2008. See: 40 N.J.R. 1058(a), 40 N.J.R. 4595(a). Section was "Severability".

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise: "Affiliate" means an insurer that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under…

(a) Any insurer seeking to withdraw shall file the informational filing and otherwise comply with the requirements set forth in N.J.S.A. 17:17-10 or 17:33B-30, as applicable. (b) Any insurer seeking to withdraw shall, as part of the informational filing required pursuant to N.J.S…

(a) An insurer may request a waiver of the one-year and 90-day waiting period for commencement of nonrenewals pursuant to N.J.S.A. 17:17-10b(2) or 17:33B-30a(2), a waiver of the requirement to send non-renewal notices no later than one year prior to the dates of the non-renewals …

(a) An insurer may utilize a replacement carrier for the business that will not be renewed, pursuant to N.J.S.A. 17:17-10d or 17:33B-30d, as applicable, subject to approval by the Commissioner. The Commissioner shall notify the insurer whether the replacement carrier is approved …

(a) A senior official of the company shall notify the Assistant Commissioner of the Office of Property and Casualty of the Department, in writing, in advance of the date certain that the first non-renewal notices will be mailed and specify therein the effective dates of the first…

(a) All data or information contained in the informational filing shall be confidential and shall not be considered a public record for purposes of the Open Public Records Act, N.J.S.A. 47:1A-1 et seq., with the exception of the following information, which are public records: 1.…

Failure to comply with this subchapter may result in the imposition of sanctions by the Department including, but not limited to, sanctions pursuant to N.J.S.A. 17:33-2. Notes N.J. Admin. Code § 11:2-29.8 Recodified from N.J.A.C. 11:2-29.7 by R.2005 d.111, effective 4/4/2005. See…

If any provision of this subchapter or its application to any person or circumstance is held invalid, such determination shall not affect other provisions or applications of this subchapter which can be given effect without the invalid provision or application, and to that end th…

All life insurance and all accident and health insurance sold in connection with consumer loans or other consumer credit transactions shall be subject to the provisions of this subchapter except that such insurance sold in connection with first mortgage loans made to individual b…

(a) Credit life and credit accident and health insurance coverage on balloon loans, that is, loans in which the periodic payments are insufficient to pay the loan so that the last payment is a balloon or large amount, shall be net coverage for credit life insurance. For credit ac…

(a) Insurers authorized to transact business in New Jersey pursuant to N.J.S.A. 17B:17-1 et seq. may not require applicants to purchase involuntary unemployment insurance in combination with credit life insurance and/or credit accident and health insurance. (b) Except as provided…

The insurer shall arrange with the creditor for the establishment of procedures for delivery of the individual policy or certificate of group insurance to the debtor upon the insurance becoming effective, or within 30 days of the date upon which the indebtedness is incurred and s…