N.J. Admin. Code § 11:2-26.18
Current through Register Vol. 56, No. 21, November 4, 2024
Section 11:2-26.18 - Exemptions and effective dates(a) Insurers having direct premiums written in this State of less than $ 1,000,000 in any calendar year and less than 1,000 policyholders or certificateholders of directly written policies nationwide at the end of such calendar year shall be exempt from this subchapter for such year (unless the Commissioner makes a specific finding that compliance is necessary for the Commissioner to carry out statutory responsibilities) except that insurers having assumed premiums pursuant to contracts and/or treaties of reinsurance of $ 1,000,000 or more will not be so exempt.(b) Foreign or alien insurers filing audited financial reports in another state, pursuant to such other states requirements on audited financial reports which have been found by the Commissioner to be substantially similar to the requirements herein, are exempt from compliance with this subchapter if: 1.A copy of the audited financial report, communication of internal control related matters noted in an audit, and the accountants letter of qualifications which are filed with such other state are filed with the Commissioner in accordance with the filing dates specified in 11:2-26.4, 26.11, and 26.12, respectively (Canadian insurers may submit accountants reports as filed with the Canadian Dominion Department of Insurance). It shall not be necessary for copies of the documents referenced in this paragraph to be filed with the Commissioner if the audited financial report of such foreign or alien insurer contains an "unqualified opinion" as set forth in the applicable National Association of Insurance Commissioners (NAIC) Financial Analysis Handbook in use at the time such report is due and there is no unremediated material weakness noted in the report as set forth in 11:2-26.11; and 2. A copy of any notification of adverse financial condition report filed with such other state is filed with the Commissioner within the time specified in 11:2-26.1 0.(c) Foreign or alien insurers required to file Management's Report of Internal Control over Financial Reporting in another state are exempt from filing the report in this state provided the other state has substantially similar reporting requirements and the report is filed with the commissioner of the other state within the time specified.(d) Domestic insurers who have retained a certified public accountant on or before January 19, 2010 who qualifies as independent shall comply with this subchapter for the year ending December 31, 2010 and each year thereafter unless the Commissioner permits otherwise.(e) Domestic insurers who have not retained a certified public accountant on or before January 19, 2010 who qualifies as independent may meet the following schedule for compliance unless the Commissioner permits otherwise: 1. As of December 31, 2010, file with the Commissioner an audited financial report; and2. For the year ending December 31, 2011, and each year thereafter, such insurers shall file with the Commissioner all reports and communication required by this subchapter.(f) Foreign insurers shall comply with this subchapter for the year ending December 31, 2010 and each year thereafter unless the Commissioner permits otherwise.(g) The requirements for independent certified public accountants set forth at 11:2-26.6 shall be in effect for audits of the year beginning January 1, 2010 and each year thereafter.(h) The requirements for management's report of internal control over financial reporting set forth at N.J.A.C. 11:2-26.17are effective beginning with the reporting period ending December 31, 2010 and each year thereafter. An insurer or group of insurers that is not required to file a report because the total written premium is below the threshold and subsequently becomes subject to the reporting requirements shall have two years following the year the threshold is exceeded (but not earlier than December 31, 2010) to file a report. Likewise, an insurer acquired in a business combination shall have two calendar years following the date of acquisition or combination to comply with the reporting requirements.(i) The requirements for audit committees as set forth in 11:2-26.1 4 are to be in effect January 19, 2010. An insurer or group of insurers that is not required to have independent audit committee members or only a majority of independent audit committee members (as opposed to a supermajority) because the total written and assumed premium is below the threshold and subsequently becomes subject to one of the independence requirements due to changes in premium shall have one year following the year the threshold is exceeded (but not earlier than January 19, 2010) to comply with the independence requirements. Likewise, an insurer that becomes subject to one of the independence requirements as a result of a business combination shall have one calendar year following the date of acquisition or combination to comply with the independence requirements.(j) The requirements for an internal audit function set forth at N.J.A.C. 11:2-26.15are effective January 1, 2020. If an insurer or group of insurers that is exempt from the N.J.A.C. 11:2-26.15requirements no longer qualifies for that exemption, it shall have one year after the year the threshold is exceeded to comply with the requirements of that section.(k) Upon written application of any insurer, the Commissioner may grant an exemption from compliance with this subchapter if the Commissioner finds, upon review of the application, that compliance would constitute a financial or organizational hardship upon the insurer. An exemption may be granted at any time and from time to time for a specific period or periods.N.J. Admin. Code § 11:2-26.18
Amended by R.1993 d.68, effective 2/1/1993.
See: 24 N.J.R. 1940(a), 24 N.J.R. 2708(a), 25 N.J.R. 588(a).
Rule on reports prepared in accordance with generally accepted accounting principles repealed; rule on alien insurers recodified from 26.16.
Amended by R.1996 d.3, effective 1/2/1996.
See: 27 N.J.R. 3278(b), 28 N.J.R. 152(b).
Recodified from N.J.A.C. 11:2-26.15 by R.2010 d.026, effective 1/19/2010.
See: 41 N.J.R. 3364(a), 42 N.J.R. 486(b).
Former N.J.A.C. 11:2-26.18, Severability, recodified to N.J.A.C. 11:2-26.21.Amended and recodified from 11:2-26.17 by 53 N.J.R. 1085(b), effective 6/21/2021