N.J. Admin. Code § 11:17A-1.4

Current through Register Vol. 56, No. 21, November 4, 2024

Section 11:17A-1.4 - Selling, soliciting or negotiating an insurance contract

(a) No person shall solicit, negotiate or sell an insurance contract in New Jersey unless he or she is a licensed insurance producer.

(b) Selling, soliciting or negotiating an insurance contract includes, but is not limited to, the following activities:

1. Discussing the effect of age, health or other risk-related conditions of the prospective policyholder;

2. Urging or advising any prospective purchaser to buy any particular policy or to insure with any particular company;

3. Initiating sales over the telephone or otherwise;

4. Completing or signing applications for insurance if the person is other than the applicant's authorized representative;

5. Collecting premiums in person at other than a recorded place of business;

6. Making or proposing to make an insurance contract;

7. Disseminating information as to coverages in general or for any particular policy, except that this shall not prohibit the dissemination of buyer's guides or applications for coverage in response to requests from prospective policyholders;

8. Disseminating information as to rates in general or for any particular policy where the rate cannot be secured by referring to a published or printed list of standard rates;

9. Initiating an inquiry as to the terms of existing coverage, except exclusively in the course of clerical duties;

10. Discussing or describing the coverages or terms of a proposed contract of insurance with a prospective policyholder, including counseling as to which coverages to buy;

Example: If an insured or prospective insured requests advice in any communication with an unlicensed employee, the response must be made by a licensed producer.

11. Recommending or independently initiating additions or deletions to an insured's policy;

12. Signing binders, endorsements and insurance policies;

13. Authorizing the issuance or delivery of certificates of insurance, endorsements, binders or insurance policies or insurance identification cards; and

14. Responding to a policyholder's request for advice or counsel regarding policy provisions or coverage.

Example: In the course of requesting an application form or a change to an existing policy, if a policyholder or prospective policyholder, while speaking to an unlicensed person, requests an opinion about the terms of the proposed insurance contract or the proposed change to the existing contract, the response must be made by a licensed producer.

(c) No insurance producer shall negotiate or solicit in New Jersey any insurance contract which has not first been filed in New Jersey where such contract is required to be filed.

(d) Except as provided in (d)1 below, no professional employer organization or its employees, principals and/or agents shall engage in any activities listed in (b) above at any time, including while negotiating and/or conducting business with any client company or prospective client company, unless the activity is conducted or performed by a properly licensed insurance producer.

1. Professional employer organizations whose only insurance related activity when enrolling new members is either providing information on the single insurance plan available through the PEO, distributing literature on multiple insurance plans available or performing only those functions described in N.J.S.A. 17:22A-30b(2) shall not be deemed to be engaged in activity requiring licensure pursuant to (b)7, 8 or 10 above.

N.J. Admin. Code § 11:17A-1.4

Amended by R.1993 d.199, effective 5/3/1993.
See: 25 N.J.R. 446(a), 25 N.J.R. 1878(a).
Text at (b) amended to define activities further and to add examples.
Amended by R.2002 d.354, effective 11/4/2002.
See: 34 N.J.R. 2286(a), 34 N.J.R. 2549(b), 34 N.J.R. 3839(a).
In (a), substituted "sell" for "effect" and deleted "or a registered limited insurance representative" following "insurance producer"; in (b), substituted "Selling, soliciting or negotiating" for "Solicitation, negotiation and effectuation of" in the introductory paragraph and rewrote 9; in (c), deleted "or limited insurance representative" following "insurance producer".
Amended by R.2004 d.184, effective 5/3/2004.
See: 35 N.J.R. 4170(a), 36 N.J.R. 2198(a).
Added (d).