N.J. Admin. Code § 11:2-29.3

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

Section 11:2-29.3 - Informational filing withdrawals

(a) Any insurer seeking to withdraw shall file the informational filing and otherwise comply with the requirements set forth in N.J.S.A. 17:17-10 or 17:33B-30, as applicable.

(b) Any insurer seeking to withdraw shall, as part of the informational filing required pursuant to N.J.S.A. 17:17-10 or 17:33B-30, as applicable, provide the information listed in (c) below. Failure to provide all of the information shall result in a determination that the informational filing is non-compliant, and it shall be disapproved by the Commissioner. The Department shall notify a filer within 10 days of the Department's receipt of the informational filing if it is non-compliant. The insurer may resubmit the informational filing when the deficiencies have been corrected, which shall be considered a new submission.

(c) An informational filing shall contain the following:

1. The reason for the insurer's withdrawal;

2. Copies of the following notifications:

i. The Policyholder Notice of Intent to Withdraw required pursuant to N.J.S.A. 17:17-10b(1) and 17:33B-30a(1);

ii. The one-year non-renewal notice required pursuant to N.J.S.A. 17:17-10b(3) and 17:33B-30a(3);

iii. The producer notice by which the insurer advises its producers of its intent to withdraw (Producer Notice), where applicable; and

iv. The non-renewal notice to be provided to insureds within the timeframes set forth in N.J.A.C. 11:3-8, 11:1-20 or N.J.A.C. 11:1-5.2, as applicable;

3. The lines of insurance and/or program(s) to be withdrawn;

4. The number of exposures and number of policies to be non-renewed;

5. The insurer's market share by line and, in addition, for private passenger automobile insurance, exposures by territory, and for homeowners' insurance, exposures as reported pursuant to the reports required by N.J.A.C. 11:2-42.10 and, separately, any additional zip codes that fall within the insurer's definition of "coastal area";

6. A list of the insurer's producers and their current business addresses; and

7. The proposed duration of the non-renewal of the company's book of business.

(d) The insurer shall send a notice to its policyholders of the proposed withdrawal no later than 30 days following the submission of an informational filing to the Commissioner that has not been disapproved as non-compliant.

(e) Non-renewals shall not commence prior to one calendar year and 90 days following the submission of the compliant informational filing, unless a waiver is requested and approved by the Commissioner pursuant to N.J.A.C. 11:2-29.4.

(f) The insurer shall send to every policyholder:

1. A notice of non-renewal no later than one calendar year preceding the date of non-renewal, unless a waiver is requested and approved by the Commissioner pursuant to N.J.A.C. 11:2-29.4; and

2. A final notice of non-renewal in accordance with the time limit established pursuant to N.J.A.C. 11:3-8, 11:1-20 and 11:1-5.2, as applicable.

(g) Non-renewals shall take place in a manner so as to be applicable to all insureds on an equitable basis with respect to risk classification and territorial or other form of rating factor, and shall be effectuated at a uniform rate over a period not exceeding three calendar years, commencing with the date established in (e) above, unless the three-year timeframe is otherwise waived; provided, however, that if more than one company files for withdrawal for the same line of business and the companies, in the aggregate, write more than 25 percent of the market share for that line of business, the Commissioner may extend the period of withdrawal to five years.

(h) The minimum requirements for the Notice of Intent to Withdraw and non-renewal notices referenced in this section are set forth below. A sample of the notices shall be posted on the Department's web site at www.dobi.nj.gov, as may be modified from time to time.

1. The Notice of Intent to Withdraw shall:

i. Include a prominent heading, in boldface 14-point type or other conspicuous manner which draws the reader's attention;

ii. State that the purpose of the notification is to advise the insured that the insurer intends to withdraw from the applicable line(s) and/or program(s) of insurance in New Jersey;

iii. State that, as required by law, the insurer has submitted an informational filing withdrawal to the New Jersey Department of Banking and Insurance advising of its intent to withdraw;

iv. Explain the terms of the withdrawal, including the date of the proposed commencement of the non-renewal of policies and the proposed duration of the company's non-renewal of policies;

v. If applicable, such as in a case where a waiver has not been requested or approved, advise the insured that the company will send a notice of non-renewal no later than one calendar year preceding the date of non-renewal; and

vi. Advise the insured that a notice of non-renewal will be sent in accordance with the time limits established by law for that line of coverage.

2. The one-year non-renewal notice and final notices of non-renewal shall:

i. Advise the insured that the non-renewal is based on an informational filing withdrawal submitted by the insurer to the New Jersey Department of Banking and Insurance;

ii. Explain the general terms of the withdrawal and, where the informational filing provides for a replacement carrier(s), indicate that replacement coverage is being made available, and through whom such coverage is available;

iii. Advise that the non-renewal is based on a business decision of the insurer and is not intended as a negative reflection on the policyholder's insurability;

iv. Where applicable, include the name, address and telephone number of the appropriate residual market mechanism where the policyholder may seek coverage in the event that the insured is not eligible for or coverage is otherwise not available in the voluntary market;

v. Include the following statement: "For information that will assist you in shopping for coverage, you may contact your insurance agent, as well as the New Jersey Department of Banking and Insurance at 1-800-446-SHOP (7467) or visit the Department on the web at www.dobi.nj.gov"; and.

vi. If the insurer is sending a one-year non-renewal notice, state that a final notice of non-renewal will be sent in accordance with applicable timeframes for that line (for example, not less than X days prior to the expiration of the policy);

3. If a replacement carrier is utilized, in addition to the requirements set forth in (h)2 above, where an offer of replacement coverage is sent separately, the final non-renewal notice shall either include or be accompanied by further information about the replacement carrier and the process to be followed for securing coverage with the new carrier.

(i) The one-year non-renewal notice, unless waived pursuant to N.J.A.C. 11:2-29.4, and the final non-renewal notice shall be sent within the timeframes for such notices as provided by N.J.S.A. 17:17-10 or 17:33B-30, as applicable, and N.J.A.C. 11:3-8, for private passenger automobile insurance, and N.J.A.C. 11:1-20 or 5.2, as applicable, for all other lines. The notice(s) shall contain the information required for such notices set forth in applicable law. Except as set forth in this section, the notice(s) shall not include the statements otherwise required pursuant to N.J.A.C. 11:1-20.2(h) and N.J.A.C. 11:3-8.5(b)1, as applicable, related to filing complaints with the Department concerning the non-renewal.

(j) Insurers may include additional information in the notice to policyholders or provide additional notices to policyholders containing such information that the insurer deems appropriate, provided such notices or information are filed as set forth above in this section, and the information or notices are not inconsistent with the requirements of this subchapter.

N.J. Admin. Code § 11:2-29.3

Amended by 50 N.J.R. 1815(b), effective 8/6/2018