N.J. Admin. Code § 11:2-29.4

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

Section 11:2-29.4 - Requests for waivers

(a) An insurer may request a waiver of the one-year and 90-day waiting period for commencement of nonrenewals pursuant to N.J.S.A. 17:17-10b(2) or 17:33B-30a(2), a waiver of the requirement to send non-renewal notices no later than one year prior to the dates of the non-renewals set forth in N.J.S.A. 17:17-10b(3) and 17:33B-30a(3), and a waiver of the maximum three-year non-renewal period set forth in N.J.S.A. 17:17-10b(4) and 17:33B-30a(4). A request shall include a list of the insurer's producers and their current business addresses, the proposed commencement date of the withdrawal, the name(s) of any replacement carrier(s) proposed to be utilized, the number of policies to be non-renewed, and the insurer's market share in this State with respect to the type of policies to be non-renewed. The decision regarding the request for a waiver pursuant to this section shall constitute a final agency decision.

1. The Commissioner shall approve a request for waiver for any line(s), other than private passenger automobile, homeowners', workers' compensation, or medical malpractice liability, provided:

i. The insurer files the informational filing with the Commissioner at least 120 days prior to the proposed date of initial non-renewal, and provides notice to policyholders no later than 30 days following the submission of the compliant informational filing to the Commissioner;

ii. Non-renewals shall take place over a period not less than one policy cycle, there are no mid-term cancellations, except as otherwise specifically provided by law for the reason(s) set forth therein, and are performed on a random, equitable basis; and

iii. The Commissioner does not find that the waiver will adversely affect the market. In making this determination, the Commissioner shall consider, without limitation, the number of policies to be non-renewed, whether there are other insurers writing the line or lines of business from which the company seeks to withdraw, and whether there is sufficient capacity in the voluntary market with respect to the particular coverage involved.

2. With respect to private passenger automobile, homeowners', workers' compensation, and medical malpractice liability coverages, the Commissioner shall approve a request for a waiver if the company will non-renew no more than 9.5 percent of the total market per year for the particular coverage(s) involved, as of the date of the request, based on the most recent reported data available, or the Commissioner concludes that granting the waiver will not adversely affect the market after considering the standards set forth in (a)1iii above. If a waiver is granted, the insurer shall comply with the requirements in (a)1i and ii above. For purposes of this paragraph, for private passenger automobile insurance, the total market shall be determined by the number of exposures, based on the most recent year-end consolidated report filed pursuant to N.J.A.C. 11:3-3A. For all other lines, the total market shall be determined by premium volume, based on the most recent annual statement filed pursuant to N.J.S.A. 17:23-1.

3. For all lines, in addition to the (a)1 and 2 above, the Commissioner shall grant a waiver if he or she finds that the insurer is or would be in a hazardous financial condition absent provision of the waiver.

N.J. Admin. Code § 11:2-29.4

Repeal and New Rule, R.2008 d.220, effective 8/4/2008.
See: 40 N.J.R. 1058(a), 40 N.J.R. 4595(a).
Section was "Elements of proposed plan of orderly withdrawal".