N.J. Admin. Code § 11:2-1.6

Current through Register Vol. 56, No. 24, December 18, 2024

Section 11:2-1.6 - Final application

(a) After the submission of the letter of intent as required by N.J.A.C. 11:2-1.5, the applicant, upon notice from the Department, shall file the following items:

1. A copy of its charter as currently in force, certified by the lawful custodian of the original document;

2. A copy of its bylaws as currently in force, certified by a senior officer of the insurer;

3. Six copies of the current annual statement, including all supplemental exhibits;

4. One copy of the annual statement for each of the past two years, including all supplemental exhibits;

5. A certificate of valuation, certified by the insurance commissioner of the insurer's state or country of domicile;

6. A certificate of compliance certified by the insurance commissioner of the insurer's place of domicile;

7. A certified copy of a report of the most recent examination of the insurer's affairs by the Department or its equivalent, of the place in which the insurer is domiciled;

8. A document appointing the Commissioner as attorney for service of process;

9. An application for admission, on a form to be prescribed and provided by the Department, including the payment of a non-refundable application fee of $5,000;

10. A copy of the applicant's quarterly financial statements for the current year, in the NAIC format, and for such other periods of time as shall be required by the Commissioner;

11. Where applicable, a certified copy of the filing made pursuant to the holding company act of the place of domicile, for the last fiscal period, supplemented as necessary to meet the requirements of N.J.S.A. 17:27A-3(a) and (b) and applicable Securities and Exchange Commission filing requirements;

12. A statement of ownership of the applicant which shall include all shareholders of record who control five percent or more of the outstanding shares of the applicant, directly or indirectly;

13. Any tender offer materials (advertisements, invitations, etc.), if any tender offer has been made by the insurer or its parent to acquire another company within the three years preceding;

14. Biographical affidavits, to be completed by all directors and senior officers on a form prescribed and provided by the Department;

15. A corporate plan of operation consisting of:

i. A schedule listing the following:

(1) All jurisdictions in which the applicant has applied for authorization to transact the business of insurance during the preceding 10 years and the dates and results of such applications; and

(2) If a license has been refused, suspended or revoked by any jurisdiction, the applicant shall furnish an explanation and a copy of any orders, proceedings, and determinations related thereto;

ii. A description of the applicant's present business plan(s) for conducting an insurance business, including, but not limited to:

(1) Geographical areas in which business is being written;

(2) The types of insurance to be written;

(3) Marketing methods;

(4) A summary of the methods of establishing premium rates;

(5) Five-year financial projections including premium volume and income by line of business; capital, surplus and risk-based capital levels; and

(6) A description of agency systems, including any managing general agency contracts;

iii. A description of the applicant's proposed plan for conducting an insurance business in this State, including, but not limited to:

(1) The geographical area in which business is intended to be done;

(2) The types of insurance intended to be written;

(3) Proposed marketing methods;

(4) Proposed methods for the establishment of premium rates;

(5) A five-year forecast of anticipated premiums in this State by line of business; and

(6) Proposed agency systems;

iv. A summary of the applicant's reinsurance program on assumed business, indicating the name of the ceding insurers, retentions, maximum risks, types of business, types of agreements, and any other information which may, in the opinion of the Department, be relevant to this part of the applicant's operations. Additional information may be requested by the Department in order to supplement or clarify information already provided by the applicant; and

v. A summary of the applicant's reinsurance program on ceded business, indicating the name of the reinsurers, retentions, maximum risks, types of business, types of contracts, and any other information which may, in the opinion of the Department, be relevant to this part of the applicant's operations. Additional information may be requested by the Department in order to supplement or clarify information already provided by the applicant;

16. If the applicant is a foreign insurer, evidence of a certificate of deposit, certified by the commissioner of the place of domicile, confirming the deposit made therewith and that such deposit satisfies the requirements of the insurer's place of domicile;

17. If a United States branch of an alien insurer, the applicant shall provide the Department with:

i. A certificate of deposit certified by its insurance commissioner showing the amount in trust for policyholders which shall be sufficient to satisfy the requirements of N.J.S.A. 17B:22-3;

ii. A certified copy of power of attorney in favor of its United States manager; and

iii. A certified copy of a deed of trust to the trustee of the applicant's funds; and

18. If the applicant is an alien insurer, a statement of trusteed surplus in the United States.

(b) Applicants shall file the final application within 60 days of notice from the Department that the applicant is eligible for admission.

(c) In lieu of the procedures set forth in N.J.A.C. 11:2-1.5 and 1.6, an applicant may file an application for admission utilizing the applicable form of the Uniform Certificate of Authority Application (UCAA) form and procedures adopted by the NAIC. The UCAA is available on the NAIC website at www.naic.org.

1. An applicant utilizing the UCAA form shall file the information required in the UCAA with the addition of the documentation set forth in N.J.A.C. 11:2-1.5(a)3, 1.5(a)7 and 1.6(a)3 and shall pay the fee set forth at N.J.A.C. 11:2-1.6(a)10.

2. An applicant utilizing the UCAA procedures shall continue to be required to satisfy the eligibility requirements set forth in N.J.A.C. 11:2-1.4.

N.J. Admin. Code § 11:2-1.6

Amended by R.2003 d.209, effective 5/19/2003.
See: 35 N.J.R. 66(a), 35 N.J.R. 2182(a).
Rewrote the section.