N.J. Admin. Code § 11:2-29.5

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

Section 11:2-29.5 - Replacement carrier

(a) An insurer may utilize a replacement carrier for the business that will not be renewed, pursuant to N.J.S.A. 17:17-10d or 17:33B-30d, as applicable, subject to approval by the Commissioner. The Commissioner shall notify the insurer whether the replacement carrier is approved within 60 days of either: the filing by the withdrawing insurer of a request for approval of a replacement carrier or carriers; or the filing by the prospective replacement carrier or carriers of a request to be approved as a replacement carrier, whichever is later. The Commissioner shall approve an insurer as a replacement carrier:

1. If the replacement is authorized to transact the line or lines of business being transferred;

2. The replacement carrier demonstrates to the satisfaction of the Department that it will be able to maintain a net premium-to-surplus ratio of not more than 2.5 to one for five years after the transfer;

3. The replacement carrier certifies that it will comply with N.J.S.A. 17:22-6.14a(n) with respect to agents' rights;

4. If the replacement carrier has not transacted the particular line involved in the transfer in this State, the replacement carrier demonstrates that it possesses the requisite services and experience such that its methods of operation will not be hazardous to the policyholders of this State; and

5. If the replacement carrier is not domiciled in this State, the replacement carrier provides evidence that it has notified its domiciliary regulator of its intent to assume the business, and the domiciliary regulator does not object to such action.

(b) If a replacement carrier is approved pursuant to this section, the notices to be sent pursuant to N.J.A.C. 11:2-29.3(d) and (f)1 within the time periods set forth therein shall not be required, and the time period before which non-renewal may commence set forth in N.J.A.C. 11:2-29.3(e) shall not apply. A notice of non-renewal shall, however, be provided within the time period set forth in N.J.A.C. 11:2-29.3(f)2.

N.J. Admin. Code § 11:2-29.5

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 "Replacement; non-renewal".