N.J. Admin. Code § 11:1-37.9

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

Section 11:1-37.9 - Bond; alternative security

(a) An applicant for a public adjuster's license, renewal license or temporary license shall file with the Commissioner a bond, executed by the applicant and by an A rated insurer approved to transact the business of sureties in New Jersey, in the penal sum of $ 10,000 per licensee. The bond shall be filed with the License Processing Unit at the address set forth at 11:1-37.4(c). Where a license names sublicensees, a $ 10,000 bond shall be required for the licensee and for each sublicensee.

(b) The bond shall be made to the State of New Jersey for the use and benefit of any person injured by a willful, malicious or wrongful act by a public adjuster in connection with the transaction of its business.

(c) The bond shall be in the form set forth in Appendix A to this subchapter which is incorporated herein by reference.

(d) If a bond is cancelled or withdrawn, the licensee shall immediately return its license to the Commissioner. Upon the filing of a new bond and payment of the required fees in accordance with 11:1-37.1 8, the license shall be returned to the licensee. No person shall engage in the business of a public adjuster in New Jersey after its bond is cancelled or withdrawn, until the person is properly relicensed in accordance with this subchapter.

(e) Where an applicant has been unable to procure a bond after contacting at least three approved sureties, the applicant may deposit with the Commissioner, as alternative security, $ 10,000 in the form of either:

1. Cash;

2. Certificates of deposit; or

3. Irrevocable letters of credit.

(f) Any security listed in (e) above shall be deposited in accordance with the provisions of 11:2-32.3 and the applicant shall:

1. File evidence of compliance with this provision in accordance with (a) above;

2. File an affidavit that he or she was unable to obtain a bond from at least three approved sureties (which shall be identified in the affidavit) in this State; and

3. Within one year from the effective date of the applicant's license, obtain a replacement bond which conforms to the requirements of this subchapter.

N.J. Admin. Code § 11:1-37.9