N.J. Admin. Code § 11:3-1.10

Current through Register Vol. 56, No. 19, October 7, 2024

Section 11:3-1.10 - CAIP qualifications

(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 who is unable to obtain automobile insurance in New Jersey in the voluntary market and is not in good faith qualified for automobile insurance coverage in any residual market mechanism created by statute other than the CAIP. For multi-state operations, the applicant must have its operating headquarters in New Jersey but vehicles may be registered in other states. No applicant shall be deemed qualified if the principal operator of the vehicle to be insured does not hold a driver's license which is valid in New Jersey, or if a regular operator of the vehicle other than the principal operator does not hold such a license.

(b) As a prerequisite for insurance from CAIP, a prospective insured must attempt, within 60 days prior to the date of application, to obtain automobile insurance in New Jersey, and be unable to obtain such insurance. The prospective insured must certify, in the application form prescribed by CAIP, that the applicant has attempted, but has been unable, to obtain automobile insurance in New Jersey through ordinary methods. An applicant so certifying shall be considered for assignment upon making an application in good faith to the CAIP. An application shall be considered in good faith if he or she reports all information of a material nature and does not willfully make incorrect or misleading statements of a material nature in the prescribed application form approved by the Commissioner.

(c) For any risk consisting of 10 or more vehicles, the applicant must also provide:

1. A copy of the notice of cancellation or nonrenewal from the applicant's previous insurer, or an explanation concerning why the applicant was not insured; and

2. A certification that the applicant has been refused insurance within 60 days of the date of application from at least three named insurers licensed to transact automobile business in New Jersey. Such certification shall list the three insurers.

(d) No producer shall bind a risk for CAIP or submit an application for insurance to CAIP if such producer knows that the risk currently has or has been offered coverage from the voluntary market.

(e) A CAIP qualified applicant shall not be afforded coverage until it:

1. Submits an application as prescribed in the AIP plan of operation;

2. Pays the premium, or portion thereof, required in the AIP plan of operation;

3. Is accepted for coverage by CAIP as provided for in the AIP plan of operation; and

4. Completes such other requirements as set forth in the AIP plan of operation.

N.J. Admin. Code § 11:3-1.10

Adopted by 50 N.J.R. 565(a), effective 1/16/2018