New Jersey Administrative Code

(a) Any captive authorized to do business in this State may take credit for reserves on risks ceded to a reinsurer subject to the following limitations: 1. No credit shall be allowed for reinsurance where the reinsurance contract does not result in the complete transfer of the ri…

No person shall, in or from within this State, act as an insurance producer or broker for captive business without adhering to the requirements of N.J.A.C. 11:17-1 et seq. and the New Jersey Insurance Producer Licensing Act of 2001, N.J.S.A. 17:22A-26 et seq. Notes N.J. Admin. Co…

(a) Each captive shall report to the Commissioner within 30 days after any change in its executive officers, directors, or in its other principals as referenced on N.J.A.C. 11:28-1.3(a) and 1.4(a), including the submission of a biographical affidavit (forms available on the Depar…

(a) Each captive licensed in this State is required to adopt a conflict of interest statement to be completed and signed by all officers, directors, and principals as referenced in N.J.A.C. 11:28-1.3(a) and 1.4(a) and key employees. The statement shall disclose whether the indivi…

(a) The Commissioner may, subject to the provisions of this section, by order suspend or revoke the license of the captive: 1. If the captive has not commenced business according to its plan of operation within two years of being licensed; 2. If the captive ceases to carry on ins…

No person other than the issuer shall make a tender offer for or a request or invitation for tenders of, or enter into any agreement to exchange securities for, seek to acquire, or acquire in the open market or otherwise, any voting security of a domestic captive if, after the co…

The following words and terms, as used in this subchapter, shall have the following meanings, unless the context indicates otherwise. "Alien captive insurance company" means an insurance company formed to write insurance business for its parents and affiliates and licensed pursua…

(a) Any change in the nature of the captive business from that stated in the captive's plan of operation filed with the Commissioner upon application for licensure as a New Jersey captive shall require prior approval by the Commissioner. (b) Any change in any other information fi…

(a) A captive insurance company shall maintain reserves that are actuarially sufficient to support the liabilities incurred by the captive insurance company reinsuring life insurance policies. (b) A captive insurance company that issues annuity contracts shall maintain reserves t…

A captive insurance company that issues contracts that provide variable benefits shall establish separate accounts for variable benefits. Notes N.J. Admin. Code § 11:28-1.22

(a) Except as may be otherwise authorized by the Commissioner, association captive insurance companies shall comply with the investment requirements set forth in N.J.S.A. 17:24-1 et seq., except to the extent that doing so is inconsistent with the approved accounting standards in…

(a) A captive that intends to be formed and licensed to do business in any of the lines of insurance authorized by N.J.S.A. 17:47B-1 et seq., shall submit the following to the Department, as applicable: 1. A captive application for admission (form can be found on the Department's…

(a) All captive insurance companies redomesticating to New Jersey shall file the following documentation with the Department: 1. A captive application for admission (form can be found on the Department's website at http://www.state.nj.us/dobi/division_insurance/captive/app_redome…

(a) The Commissioner may have the initial application reviewed by outside experts, with the costs of the review paid by the applicant. The applicant will be billed the actual costs for such a review, up to a maximum of $ 4,000. The outside review is of an advisory nature only and…

(a) No person shall act as a captive manager in this State unless they are registered with the Department as a captive manager. The Department shall maintain a list of registered captive managers in this State and shall post on its website a list of all registered captive manager…

(a) Pursuant to N.J.S.A. 17:47B-1 et seq., a captive insurance company doing business in this State shall annually submit to the Commissioner a report of their financial condition, verified by oath of two of the captive's executive officers, prior to March 1 of each year. An asso…

(a) All captives shall be subject to an annual audit by an independent certified public accountant, registered with the Commissioner, and subject to N.J.S.A. 17:47B-6b, shall annually file an audited financial report describing the results of the said audit with the Commissioner …

(a) After becoming subject to the provisions of this subchapter, captives shall, within 90 days, report to the Commissioner in writing, the name and address of the independent certified public accountant retained to conduct the annual audit set forth in this subchapter. (b) No pe…

(a) This subchapter establishes a plan pursuant to N.J.S.A. 17:29D-1: 1. To provide personal private passenger automobile insurance coverage for automobiles owned or operated by qualified applicants subject to the conditions stated; and 2. To provide insurance coverage for all mo…

(a) CAIP shall provide coverage to all CAIP qualified applicants as set forth in the AIP plan of operation. For the purposes of this section, a "CAIP qualified applicant" means the owner or registrant of a motor vehicle registered in New Jersey or to be registered within 60 days …

(a) CAIP shall provide to CAIP qualified applicants, bodily injury liability and property damage liability coverages as follows: 1. CAIP shall provide basic combined single limit of $ 35,000 and statutory uninsured motorist coverage except: i. When limits in excess of the basic c…

(a) Every insurer admitted to transact and transacting motor vehicle insurance in the State of New Jersey shall participate in CAIP to the extent required by this subchapter and the AIP plan of operation. At the end of each fiscal period, CAIP's operating profit or loss shall be …

(a) The Governing Committee shall file for prior approval by the Commissioner, all rates, rules surcharges, minimum premiums, classifications, and policy forms which shall be used by insurers writing risks through the AIP. Proceedings to review rate filings shall be conducted pur…

(a) The PAIP shall provide for an installment premium payment option in accordance with procedures established by the Governing Committee in the AIP plan of operation. With respect to the installment premium payment option, the AIP plan of operation shall specify: 1. The minimum …

(a) An applicant, insured, producer, LAD carrier, CAIP servicing carrier, person applying to act as a LAD carrier or CAIP servicing carrier, or insurer may petition for appeal to the Commissioner from an adverse decision of the Governing Committee by filing a request in writing w…

Failure to comply with the provisions of this subchapter may result in the imposition of penalties as authorized by law. Notes N.J. Admin. Code § 11:3-1.16 Adopted by 50 N.J.R. 565(a), effective 1/16/2018

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise: "Actively writing" means an insurer writing private passenger and/or commercial automobile liability or physical damage insurance in thi…

(a) There is created in the State of New Jersey a plan for the administration and apportionment of automobile insurance for qualified applicants to be known as the New Jersey Automobile Insurance Plan. (b) The AIP shall be administered by a Governing Committee pursuant to this su…

(a) The AIP shall be administered by a Governing Committee of 18 members. No employee of a voluntary market automobile insurer that is not actively writing automobile insurance or that has filed and received approval of an application to withdraw from writing automobile insurance…

(a) The AIP plan of operation shall provide for the prompt and efficient provision of automobile insurance to qualified applicants. The AIP plan of operation shall provide for, among other matters: 1. The internal organization and proceedings of the Governing Committee; 2. Standa…

(a) Every insurer shall participate in the PAIP to the extent required by this subchapter and the AIP plan of operation. (b) The requirements of this subchapter shall not apply to the following: 1. Insurers that have not issued or renewed policies of private passenger automobile …

(a) PAIP shall provide coverage to all PAIP qualified applicants as set forth in the AIP plan of operation. For purposes of this subchapter, a "qualified applicant" shall include: 1. A person domiciled in New Jersey, who is an owner of an automobile registered and principally gar…

(a) PAIP shall provide to PAIP qualified applicants bodily injury liability, property damage liability, personal injury protection, uninsured/underinsured motorists, and physical damage coverages at the minimum levels required by law, including all options related thereto. (b) PA…

(a) With respect to PAIP risks only, the Governing Committee shall establish procedures in the plan of operation to distribute risks eligible for coverage to insurers on an equitable basis based on the proportion that the insurer's share of the voluntary market for personal priva…

This subchapter applies to claims arising under motor vehicle collision and comprehensive coverages. Notes N.J. Admin. Code § 11:3-10.1 Amended by R.1985 d.629, effective 12/16/1985. See: 16 New Jersey Register 3170(a), 17 New Jersey Register 2988(a). Section heading was Applicat…

To ensure compliance with this rule, the Department of Banking and Insurance personnel will investigate the market performance of insurers. To enable Department personnel to reconstruct an insurer's activities pursuant to the provisions of this rule, each insurer must maintain a …

The following words and terms, when used in this subchapter, shall have the following meanings unless the context clearly indicates otherwise: "Actual cash value", unless otherwise specifically defined by law or policy, means the lesser of the amounts for which the insured or the…

(a) If the insurer intends to exercise its right to inspect, or cause to be inspected by an independent appraiser, damages prior to repair, the insurer shall have seven working days following receipt of notice of loss to inspect the insured's damaged vehicle, which is available f…

(a) If the insurer elects to make a cash settlement, it must bear in mind at all times that the insured's position is that of a retail consumer and the settlement value arrived at must be reasonable and fair for a person in that position. Written, itemized valuations showing all …

(a) Unless a clear justification exists, physical damage claims will have a maximum payment period of 30 calendar days. A payment period is the period between the date of the receipt of the notice of loss by the insurer, and: 1. The date the settlement check is mailed; or 2. The …

In the event of the theft of the entire vehicle the insurer at the time of notification shall advise the insured of his or her right under the policy to be reimbursed for transportation expenses. The notification must be confirmed in writing immediately after receipt of notice of…

(a) If an insured has received payment under his or her physical damage coverage that is subject to a deductible, the insured shall share, pro rata, with the insurer any net recovery received by the insurer from third parties. (b) Net recovery shall be the total recovery less the…

If the insurer requires that its insured obtain more than one estimate of motor vehicle damage, the reasonable cost of such additional estimates, if any, shall be borne by the insurer unless the estimator does the work. Notes N.J. Admin. Code § 11:3-10.8

There shall be no attempt to discourage an insured from filing a physical damage claim, nor shall an insurer encourage its insured to assert a claim against a third party in lieu of filing a physical damage claim under the insured's policy. Notes N.J. Admin. Code § 11:3-10.9

(a) No policy insuring against loss resulting from liability imposed by law for bodily injury, death and property damage sustained by any person arising out of the ownership, operation or use of a motorized bicycle as defined in N.J.S.A. 39:1-1, as amended, shall be issued in the…

The New Jersey Automobile Insurance Reform Act of 1982 (N.J.S.A. 17:29A-33 et al.) requires that each insurer calculate and collect, on a flat and uniform basis per insured automobile statewide, the taxes which are paid pursuant to N.J.S.A. 54:18A-1 et seq. This subchapter provid…

(a) This subchapter applies to every insurer authorized to transact the business of automobile insurance in the State and every rating organization engaged in the business of rate-making for such insurers. (b) The provisions of this subchapter are not intended to supersede or ame…