N.J. Admin. Code § 11:3-8.3

Current through Register Vol. 56, No. 21, November 4, 2024

Section 11:3-8.3 - Standards for renewal

(a) Every insurer shall make an offer to the insured named policyholder subject to this subchapter to renew such policy upon its expiration date, unless a valid notice of nonrenewal has been sent by the insurer to the insured in accordance with this subchapter.

(b) Each renewal offer shall be in the usual form of either a renewal policy, a certificate, or a renewal offer or bill. A renewal offer or bill shall indicate the date by which the renewal premium is due. The renewal bill or offer shall be mailed or delivered by the insurer to the insured not more than 45 days and not less than 30 days prior to the date the renewal premium is due.

1. Payment by the insured in accordance with the terms stated in the billing notice or in accordance with terms agreed to with the company or producer shall constitute acceptance of the renewal offer by the insured. Where acceptance of the policy renewal is made by payment of the renewal premium on or before the expiration date of the policy, the premium shall be deemed to have been received timely if it was mailed prior to the due date and received by the insurer within three business days after the due date. The date of mailing may be determined by the postmark on the envelope.

i. As an alternative to retaining the payment envelope as proof of the date of mailing, an insurer may presume that receipt of the mailed renewal premium payment within three business days after the due date conclusively establishes that the payment was mailed prior to the due date.

ii. An insurer may file changes to its rating system to charge a late fee of not more than $ 25.00 when the renewal premium was received after the due date but is deemed timely as provided in (b)1i above.

2. Where acceptance of the renewal is made by mailing payment of the renewal bill, the renewal notice shall state the following in a clear and conspicuous manner:

i. The due date for receipt of the renewal premium and a notice to the insured designed to help the insured understand what "12:01 A.M." means as a deadline;

ii. The consequences to the insured if the insurer does not receive the renewal premium by the due date, including any late payment penalties for receipt of the premium by the insurer after the due date pursuant to (b)1ii above; and

iii. A statement advising whether the insured has the option to make payment to the insurance producer.

(c) Subject to changes approved by the Commissioner that had become effective prior to the expiration of the current policy, each renewal shall offer coverage, limits and terms at least as favorable to the insured as the expiring policy, including, but not limited to the schedule of premium payments, if any.

(d) The requirements of (c) above shall not preclude the insurer from offering physical damage coverage with a higher deductible than that in the expiring policy, provided the insured is informed that a lower deductible is available at an appropriate rate.

(e) Nothing in this subchapter shall be construed as prohibiting a renewal policy from being issued for higher limits of coverage and/or additional coverage(s), provided that such additional protection is specifically requested by the insured and the insurer is willing to provide it. Conversely, nothing shall prohibit the renewal policy from being issued for lower limits of coverage and/or fewer coverages provided that such reduction in protection is specifically requested by the insured and further provided that coverage in no case shall fall below the level or levels otherwise required by law.

(f) In any instance in which an insurer may, pursuant to this subchapter, nonrenew an automobile policy, it may, in lieu of the nonrenewal and in compliance with all applicable provisions of this subchapter, condition the renewal of the policy upon a change of limits or elimination of any coverage not required by law.

N.J. Admin. Code § 11:3-8.3

Amended by R.1973 d.30, effective 1/25/1973.
See: 4 N.J.R. 305(b), 5 N.J.R. 48(a).
Amended by R.1976 d.328, effective 10/18/1976.
See: 8 N.J.R. 421(a), 8 N.J.R. 516(e).
Amended by R.1977 d.100, effective 3/23/1977.
See: 9 N.J.R. 178(b).
Amended by R.1977 d.437, effective 1/1/1978.
See: 9 N.J.R. 435(d), 9 N.J.R. 586(b).
Amended by R.1983 d.190, effective 6/6/1983.
See: 15 N.J.R. 231(a), 15 N.J.R. 927(a).
Recodified from 11:3-8.1. Replaced (d).
Amended by R.1986 d.418, effective 10/6/1986.
See: 18 N.J.R. 1079(a), 18 N.J.R. 2039(a).
Emergency Amendment, R.1990 d.626, effective 11/26/1990, operative April 1, 1991 (expired January 25, 1991).
See: 22 N.J.R. 3766(b).
Recodified from 11:3-8.2. In (f)1i, added notice of eligibility points and added ii-iv.
Adopted Concurrent Proposal, R.1991 d.89, effective 1/25/1991, operative April 1, 1991.
See: 22 N.J.R. 3766(b), 23 N.J.R. 507(a).
Provisions of emergency amendment R.1990 d.626 readopted without change.
Amended by R.1991 d.45, effective 2/4/1991.
See: 22 N.J.R. 1678(a), 23 N.J.R. 306(b).
In (f): revised address in (f)2i and deleted NJAFIUA reference in (f)3, adding text "... a residual market mechanism created by statute."
Amended by R.1998 d.43, effective 1/20/1998.
See: 29 N.J.R. 3107(a), 30 N.J.R. 366(b).
In (f), added 3 and 4.
Amended by R.1999 d.270, effective 8/16/1999.
See: 30 N.J.R. 2564(a), 31 N.J.R. 2383(b).
In (b), rewrote the last sentence; rewrote (c); in (f), changed N.J.A.C. references throughout, rewrote the introductory paragraph in 1, deleted "applicable to the nonstandard rate level of an approved standard/nonstandard rating plan" following "rules" in the first sentence of 1ii, and deleted a former 4; and rewrote (i).
Amended by R.2001 d.44, effective 2/5/2001.
See: 32 N.J.R. 3891(a), 33 N.J.R. 573(a).
In (a), substituted "policyholder" for "in a policy"; and in (f), inserted "named policyholder" following "to the insured".
Amended by R.2003 d.498, effective 12/15/2003.
See: 35 N.J.R. 3081(a), 35 N.J.R. 5601(a).
Rewrote the section.
Amended by R.2008 d.380, effective 12/15/2008 (operative January 1, 2009).
See: 40 N.J.R. 3572(a), 40 N.J.R. 6970(b).
Section was "General provisions". In (a), deleted "or conditioned renewal as specified in (h) below" following "nonrenewal"; in the introductory paragraph of (b)1, inserted the last two sentences; added (b)1i and (b)1ii; in (b)2i, substituted "to" for "of" following "notice"; in (b)2ii, substituted "(b)1ii above" for "N.J.A.C. 11:3-19A.7(g)"; in (d), substituted "(c)" for "(b)"; deleted former (e) and (h); recodified former (f) and (g) as (e) and (f); in (f), deleted "the provisions of" following "pursuant to" and substituted "all applicable provisions of this subchapter" for "such provisions".