Title 17B, Title 17B: INSURANCE

17B:18-28. Filing certificate on number of policies; copy delivered to Chief Justice If any annual statement of any domestic mutual insurer heretofore or hereafter filed with the commissioner sets forth a number of life insurance policies of the insurer in force in excess of ten …

17B:18-29. Election of directors in mutual insurer issuing temporary stock A bare majority of the entire board of directors of a domestic mutual insurer which issues temporary capital stock, as provided in section 17B:18-9, shall be elected by the holders of the temporary stock, …

17B:18-3. Mutual insurer defined A domestic mutual insurer is an insurer incorporated in accordance with the laws of this State without permanent capital stock, the governing body of which, except while temporary capital stock is outstanding as provided in section 17B:18-9 and ex…

17B:18-30. Proxy voting permitted at elections At any election of directors, managers or other officers of a domestic insurer, except any election of directors held pursuant to N.J.S. 17B:18-18 to 17B:18-28, inclusive, every person entitled to vote at the election may vote in per…

17B:18-31. Emergency by-laws The board of directors of any domestic insurer may at any time adopt emergency by-laws, subject to repeal or change by action of those having power to adopt regular by-laws for the insurer, which shall be operative during a national emergency caused b…

17B:18-32. Failure to adopt emergency by-laws; procedure In the event that the board of directors of a domestic insurer has not adopted emergency by-laws, the following provisions shall become effective upon the occurrence of such a national emergency: a. Three directors shall co…

17B:18-33. National emergency; succession At any time the board of directors of a domestic insurer may, by resolution, provide that in the event of such a national emergency and in the event of the death or incapacity of the Chairman of the Board and chief executive officer, the …

17B:18-34. National emergency; relocation of principal place of business At any time the board of directors of a domestic insurer may, by resolution, provide that in the event of such a national emergency the home office or principal place of business of the company shall be at s…

17B:18-37. Definitions; deposit prerequisite to authorization 17B:18-37. a. As used in this section and in N.J.S.17B:18-38 and N.J.S.17B:18-39: (1) "Bank" means a State or federally chartered bank, savings bank, or savings and loan association which has trust powers and which has…

17B:18-38. Deposits; interest on; substitution of 17B:18-38. The commissioner shall hold the securities deposited pursuant to N.J.S.17B:18-37 for the benefit and security of all the policyholders of the insurer depositing them, but shall, so long as it continues solvent and compl…

17B:18-39. Deposits to do business in other jurisdictions 17B:18-39. The custodian, on behalf of the commissioner, may receive from any domestic insurer a deposit of securities necessary to enable it to transact business in any other state, territory, dependency or Federal Distri…

17B:18-39.1. Fees for services of custodian required pursuant to N.J.S.17B:18-37 et seq. The Commissioner of Insurance shall establish, by regulation, the fees to be charged insurance companies for the services of the custodian pursuant to the requirements of N.J.S.17B:18-37 thro…

17B:18-4. Organization of stock or mutual insurer a. Ten or more persons may form a domestic stock or domestic mutual insurer to engage in the business of writing any or all of the kinds of insurance defined in sections 17B:17-3, 17B:17-4 and 17B:17-5 by signing a certificate sta…

17B:18-41. Examination before commencing business Before issuing a certificate of authority to a domestic insurer, the commissioner shall be satisfied, by such examination and evidence as he sees fit to make and require, that the whole amount of the capital stock set forth in the…

17B:18-42 Certificate of authority; when issuable. 17B:18-42. When satisfied that a domestic insurer has complied with all the requirements of this code to entitle it to engage in business and that the proposed methods of operation of the insurer are not such as would render its …

17B:18-43. Domestic insurers, powers, duties--general corporation law a. Any domestic insurer and its stockholders, members and directors, shall have all the powers granted and be subject to all the duties and obligations imposed by New Jersey Business Corporation Act (N.J.S. 14A…

17B:18-44. Stock of other insurance company A domestic insurer which purchases stock of another insurance company in compliance with section 17B:20-4 may pay therefor in cash or its equivalent or in its own capital stock, and may issue its capital stock in payment to the persons …

17B:18-45. Authority to acquire, hold and convey real estate Any domestic insurer, in addition to the authority contained in sections 17B:20-1 to 17B:20-5, inclusive, may acquire, hold and convey any real estate as may be convenient in its operations, provided that if the commiss…

17B:18-46. Limitation on dividends to stockholders No profits on participating policies and contracts heretofore or hereafter issued by a domestic stock insurer in excess of the larger of a. 10% of such profits before payment of policyholder dividends, or b. $0.50 per year per $1…

17B:18-47. Increase or decrease of capital stock Any domestic stock insurer may increase its capital stock or decrease it to an amount not less than the minimum required by this code by proceeding in the manner and subject to the conditions of section 17B:18-56. The whole of the …

17B:18-48. Advertisement of assets to include liabilities When an insurer doing business in this State advertises its assets, it shall, in the same connection and equally conspicuously, advertise its liabilities, the same to be determined in the manner required in making the annu…

17B:18-49. Cash disbursements to be evidenced by voucher No domestic insurer shall make any cash disbursement of $100.00 or more unless it is evidenced by a voucher, signed by or on behalf of the person receiving the money, and correctly describing the consideration for the payme…

17B:18-5. Approval of certificate by commissioner; recording and filing The certificate of incorporation shall be proved or acknowledged as required for deeds of real estate and be submitted to, and examined by, the commissioner, and if found by him to be in accordance with this …

17B:18-50. Payment of taxes, charges and fees prior to determination of invalidity The directors of any domestic insurer are authorized to pay, and to appropriate money to pay, such taxes, charges and fees as have been or may be imposed against the property, business, income or f…

17B:18-51. Compensation of directors The director of any domestic insurer when acting as its officer, counsel, agent or representative, and also for each occasion of his attendance at meetings of the board or its committees, may receive such compensation as a majority of the boar…

17B:18-52. Insurer payments to senior officers restricted No domestic insurer shall: a. Pay any salary, compensation or emolument to any of its senior officers, directors or trustees, unless the payment is first authorized by a vote of its board of directors; b. Make any agreemen…

17B:18-53. Reporting amount of stock owned and changes therein by director, officer, and principal stockholders of domestic stock insurers Every person who is directly or indirectly the beneficial owner of more than 10% of any class of stock of a domestic stock insurer or who is …

17B:18-54. Suit for profits realized by director, officer, and principal stockholders For the purpose of preventing the unfair use of information which may have been obtained by such beneficial owner, director or officer by reason of his relationship to such insurer, any profit r…

17B:18-55. Limitation on sale of stock by director, officer and principal stockholders It shall be unlawful for any such beneficial owner, director or officer, directly or indirectly, to sell any stock of such insurer if the person selling the stock or his principal a. does not o…

17B:18-56. Stock insurers; change of name, extension of corporate existence or amendment of charter or certificate of incorporation a. Any stock insurer heretofore or hereafter incorporated under any general or special law of this State may change its name, extend its corporate e…

17B:18-57. Mutual insurers; change of name, extension of corporate existence or amendment of charter or certificate of incorporation Mutual insurers; change of name, extension of corporate existence or amendment of charter or certificate of incorporation. a. Any mutual insurer he…

17B:18-58. Mutual insurers; adoption of amended charter or certificate of incorporation When any mutual insurer adopts an amendment to its charter or certificate of incorporation, as provided for in this chapter, the board of directors of the insurer, at the time of adopting the …

17B:18-59. Mutualization of stock insurers a. A stock insurer may become a mutual insurer under such plan and procedure as may be approved by the commissioner after a hearing thereon. b. The commissioner shall not approve any such plan, procedure or mutualization unless: (1) It i…

17B:18-6. Stipulations in stock subscriptions and applications Every subscription to the capital stock of a stock insurer shall contain the stipulation that no sum shall be used for commission, promotion or organization expenses in excess of a per cent of the amount paid upon the…

17B:18-60. Merger and consolidation of stock insurers a. A domestic stock insurer may merge or consolidate with one or more domestic or foreign stock insurers in the following manner and subject to the following provisions. b. (1) Mergers or consolidations may be initially propos…

17B:18-61. Merger and consolidation of mutual insurers a. A domestic mutual insurer may merge or consolidate with one or more domestic or foreign mutual insurers in the following manner and subject to the following provisions: b. (1) The plan for merger or consolidation may be pr…

17B:18-62. "Reinsurance" defined "Reinsurance" is a contract under which an originating insurer, called the "ceding insurer" , procures insurance for itself in another insurer, called the "assuming insurer," with respect to part or all of an insurance risk of the originating insu…

17B:18-63. Reinsurance of risks An insurer may reinsure such risks as it is authorized to insure, subject to the provisions of this Code. L.1971, c. 144, s. 17B:18-63.

17B:18-64. Prerequisites to reinsurance a. No domestic insurer may become a ceding insurer with respect to all or any substantial part of its outstanding insurance risks or become an assuming insurer with respect to all or any substantial part of the outstanding insurance risks o…

17B:18-65. Extended reinsurance In addition to the reinsurance specified in 17B:18-63, an insurer authorized to do the business specified in section 17B:17-3, 17B:17-4 and 17B:17-5 may through reinsurance assume any insurance risk and may retrocede any portion thereof; provided, …

17B:18-65.1. Rules and regulations The commissioner is authorized to adopt, promulgate and enforce such rules and regulations as he determines to be necessary to implement this act. L.1975, c. 80, s. 2, eff. May 2, 1975.

17B:18-66. Reinsurance pooling Any reinsurance authorized by sections 17B:18-63 or 17B:18-65 or any reinsurance of blanket accident insurance referred to in section 4 of Public Law 1939, c. 305 (17B:27-32) may be provided through pooling arrangements with other insurers for purpo…

17B:18-67. Short title 1. Sections 2 through 6 of this act shall be known and may be cited as the "Dynamic Capital and Surplus Act of 1993." L.1993,c.235,s.1.

17B:18-68. Surplus, capital required 2. Except as provided by section 3 of P.L.1993, c.235 (C.17B:18-69), no domestic insurer shall commence business in this State unless the insurer has surplus and capital actually paid in cash of at least the following amounts, and no domestic …

17B:18-69. Temporary waiver of capital, surplus requirements 3. An insurer authorized to transact the kind of business specified in N.J.S.17B:17-3, N.J.S.17B:17-4 or N.J.S.17B:17-5 prior to and on the effective date of this act may apply to the commissioner for a temporary waiver…

17B:18-7. Certificate of incorporation of mutual insurer; election of directors a. The certificate of incorporation of any mutual insurer of this State hereafter incorporated may contain provisions for the elections of directors in the manner set forth in sections 17B:18-11 to 17…