WWW.THESIS.DISLIB.INFO
FREE ELECTRONIC LIBRARY - Online materials, documents
 
<< HOME
CONTACTS



Pages:   || 2 |

«INSURANCE DEPARTMENT OF BANKING AND INSURANCE DIVISION OF INSURANCE Surplus Lines Insurance: Procurement Procedure Proposed Repeals: N.J.A.C. ...»

-- [ Page 1 ] --

INSURANCE

DEPARTMENT OF BANKING AND INSURANCE

DIVISION OF INSURANCE

Surplus Lines Insurance: Procurement Procedure

Proposed Repeals: N.J.A.C. 11:1-33.3 through 33.7, and 11:1-33 Appendix Exhibit A

Proposed Recodification with Amendment: N.J.A.C. 11:1-33.8 as 33.3

Proposed Amendments: N.J.A.C. 11:1-33 Appendix Exhibit B

Proposed New Rules: N.J.A.C. 11:1-33 Appendix Exhibits A-1 and A-2

Authorized By: Holly C. Bakke, Commissioner Department of Banking and Insurance Authority: N.J.S.A. 17:1-8.1,17:22-6.41, 17:22-6.42, 17:22-6.43, and 17:22-6.45, and P.L.

2003, c. 179 Calendar Reference: See Summary below for explanation of exception to calendar requirement Proposal Number: PRN 2004 - 173

Submit comments by July 2, 2004 to:

Douglas Wheeler, Assistant Commissioner Legislative and Regulatory Affairs Department of Banking and Insurance 20 West State Street P.O. Box 325 Trenton, New Jersey 08625-0325 Fax: (609) 292 -0896 Email: Legsregs@dobi.state.nj.us

The agency proposal follows:

Summary The Department of Banking and Insurance (Department) proposes to delete N.J.A.C.

11:1-33.1(a) and to repeal N.J.A.C. 11:1-33.3 through 33.7. These provisions combined established procedures and standards for the acceptance or disapproval of policy forms submitted by surplus lines insurance agents in accordance with the Surplus Lines Law, N.J.S.A. 17:22-6.40.

The proposed deletion and repeals are in accordance with the recently enacted P.L. 2003, c.179, which deregulated policy forms used by surplus lines insurers. The Department is proposing these new rules, repeals and amendments to N.J.A.C. 11:1-33 to alert consumers of the provisions of this new law. As required in the new law, the Department will henceforth not require surplus lines producers to submit certain forms on behalf of surplus lines insurers for approval. The proposed deletion and repeals reflect the Legislature’s objective to have less regulatory oversight in the surplus lines market, as is the practice in other states.

The Department is proposing to recodify N.J.A.C.11:1-33.1(b) as (a), and to make a grammatical change in this provision so as to clarify that the remaining subsections, recodified as (b) and (c), set forth the procedures for the procurement of insurance from surplus lines insurers and from ineligible unauthorized insurers, in accordance with N.J.S.A. 17:22-6.43, 6.45 and 6.47.

The Department is also proposing to amend subsections (a) of N.J.A.C. 11:1-33.8, recodification as N.J.A.C. 11:1-33.3, to indicate that aNew Jersey insurance producer who may be placing coverage for a New Jersey insured with a surplus lines insurer or an ineligible unauthorized insurer must complete the form incorporated into the rule as Exhibit B, as evidence of their first having made a diligent effort to place the coverage with an authorized insurer.

In addition, the Department proposes a new N.J.A.C. 11:1-33.3(b)1 which provides that, at the time of solicitation, the producer shall provide to the person solicited a copy of the form incorporated into the rule as Exhibit A-1 in the Appendix to Subchapter 33, and retain a signed copy. The Department is also proposing to recodify N.J.A.C. 11:1-33.8(b)1 and 2 as N.J.A.C.

11:1-33.3(b)2 and 4, with no change in text. The Department further proposes new N.J.A.C.

11:1-33.(b)3 which provides that, at the time of issuing or delivering a surplus lines policy, evidence of coverage or renewal policy, the surplus lines insurer or producer shall place upon the policy, evidence of coverage and renewal policy the statement set forth in Exhibit A2 in the Appendix. The Department is also amending the text of recodified N.J.A.C. 11:1-33.3(d)1. The cross-reference therein should be to N.J.A.C. 11:1-33.3(b)1 and not to N.J.A.C. 11:1-33.9(b)1 as it currently reads.

The Department is also proposing to repeal Exhibit A in the Appendix and replace it with new Exhibits A-1 and A-2. Proposed Exhibit A-1 is a form that surplus lines insurance applicants must sign at the time of solicitation by a licensed insurance producer. The form is a notification that the insurance policy written by a surplus lines insurer is not subject to the filing or approval requirements of the Department. Proposed new Exhibit A-2 sets forth text that is to be shown on the policy, evidence of coverage and renewal, stating that the surplus lines policy may contain conditions, limitations, exclusions and less favorable terms than a policy issued by an insurer granted a Certificate of Authority by the Department.

The Department also proposes to amend Exhibit B in the Appendix, which deals with the certification of effort to place a risk with an authorized insurer. Under the amendments, originating producer certifies either that he was unable to obtain an offer/quote for coverage of the risk in the admitted market, or that the only offer(s)/quote(s) obtained in the admitted market reflect such a substantial premium increase, and/or reduction in coverage that, as a practical matter, coverage in the admitted market is unavailable.

This rule proposal provides for a comment period of 60 days, and therefore, pursuant to N.J.A.C. 1:30-3.3, is not subject to the provisions of N.J.A.C. 1:30-3.1 and 3.2 governing rulemaking calendars.





–  –  –

The proposed repeals, new rules and amendments should have a positive impact on New Jersey consumers because they will ease current restrictions in the surplus lines market and will increase insurance availability to those who previously could not obtain insurance from insurers in the admitted market. In addition, the new disclosures which producers will be required to provide will ensure that consumers are aware of the unregulated nature and potential disadvantages of surplus lines policies, thus enabling consumers to make better-informed decisions on whether to proceed to purchase such a policy.

–  –  –

The proposed repeals, new rules and amendments will have a positive economic impact on surplus lines insurers and policyholders in New Jersey, as they will enable surplus lines insurers to better respond to the needs of applicants or insureds who cannot obtain insurance from admitted insurers. The proposed repeals, new rules and amendments will facilitate applicants and insureds being able to obtain coverage that either is not available, or that may only be obtained from an authorized insurer for a premium amount that is so high as to render the coverage unavailable from such an insurer as a practical matter. As a result, New Jersey entities that might otherwise find it impossible or unfeasible to obtain insurance may now be able to secure coverage. Ultimately, the repeals, new rules and amendment will help stabilize the market and encourage competition, consistent with the current deregulation initiative in the industry.

–  –  –

A Federal standard analysis is not required because the proposed repeals, new rules and amendments deal with surplus lines insurance and are not subject to any Federal standards or requirements.

–  –  –

The Department believes that the proposed repeals and new rules and amendments will apply to “small businesses” as that term is defined in the Regulatory Flexibility Act, N.J.S.A 52:14B-16 et seq., because some insurers and surplus lines producers may have fewer than 100 full-time employees. To the extent that the repeals, new rules and amendments will apply to such small businesses, they will be required to comply with the proposed amendments and new rules as described in the Summary above. The Department does not believe that the proposed amendments, repeals and new rules will impose any substantial additional compliance costs on insurers and producers. Surplus lines producers’ and insurers’ costs may decrease because they will no longer be required to submit policy forms for approval. All that will be required of producers is to provide notice to applicants at the time of solicitation stating that the applicant or insured understands that a policy written by a surplus lines insurer is not subject to the filing or approval requirements of the New Jersey Department of Banking and Insurance. No distinction is made in N.J.S.A. 17:22-6.45 or PL. 2003. c. 179 amongst insurers or producers based on size.

Therefore, the proposed repeals, new rules and amendments provide no differentiation in compliance requirements based on business size. All businesses should be able to comply with the proposed repeals, new rules, amendments utilizing current staff no outside professional services or resources should be needed. The proposed amendments and new rules impose no additional reporting or recordkeeping requirements on insurers.

–  –  –

The proposed repeals, new rules and amendments have no impact on the achievement of Smart growth and implementation of the State Development and Redevelopment Plan.

Full text of the proposed repeals may be found in the New Jersey Administrative Code at N.J.A.C. 11:1 -33.3 through 33.7 and 11:1-33 Appendix Exhibit A.

Full text of the proposed amendments and new rules follows (additions indicated in

boldface thus; deletions indicated in brackets [thus]):

–  –  –

11:1-33.1 Purpose and scope [(a) These rules establish procedures and standards for the acceptance or disapproval of policy forms submitted by surplus lines agents in accordance with the Surplus Lines Law, N.J.S.A., 17:22-6.40 et seq. Nothing in these rules shall authorize the acceptance or use, or prohibit the disapproval, of a policy form that is otherwise prohibited by another law or rule.] [(b)] (a) These rules [also] set forth procedures for the procurement of insurance from surplus lines insurers, and from ineligible unauthorized insurers in accordance with N.J.S.A. 17:22-6.43,

6.45 and 6.47.

–  –  –

Recodify existing (a) and (d) as (b) and (c) (No change in text.) 11:1-[33.8] 33.3 Surplus lines insurance coverage procurement requirements (a) Except for coverages on the Exportable List, any licensed New Jersey insurance producer who may be placing coverage on behalf of a New Jersey insured shall first make a diligent effort to place the coverage with an authorized insurer. As evidence of having made such an effort, the producer shall complete form SLPS-6 CERT1, incorporated herein by reference as subchapter Appendix Exhibit B. Only that coverage not so procurable from an authorized insurer may be placed with a surplus lines insurer, provided, however, that if the unprocurable coverage appears on the Exportable List, the associated commercial general liability and commercial property coverages may be exported along with the unprocurable coverage.

–  –  –

authorized insurer [pursuant to] or a surplus lines insurer as set forth in (a) above, a New Jersey licensed surplus lines agent may place the coverage with an ineligible unauthorized insurer. Procurement of insurance from an ineligible unauthorized insurer may be made only when it is not otherwise procurable from admitted insurers or a surplus lines insurer and only if the express[ed] conditions in (b)1 through [5] 7 below are fully satisfied at lease five working days prior to the binding of insurance coverage.

–  –  –

coverage, or a renewal policy, the surplus lines insurer or producer shall place upon the policy, evidence of coverage and renewal policy the statement incorporated herein by reference as Exhibit A-2 in the Appendix for this subchapter.

–  –  –

(d) Upon renewal of any placement pursuant to (b) above, a diligent effort shall be made to place the business with an authorized insurer or a surplus lines insurer in accordance with (a) above. If the business cannot be placed with an authorized insurer or a surplus lines insurer, the following conditions shall be met at least five business days prior to the effective

date of the renewal policy:

–  –  –

Form to be used at the time of solicitation:

The undersigned solicited person has been advised by the undersigned insurance producer and understands that an insurance policy written by a surplus lines insurer is not subject to the filing or approval requirements of the New Jersey Department of Banking and Insurance. Such a policy may contain conditions, limitations, exclusions and less favorable terms than a policy issued by an insurer granted a Certificate of Authority by the New Jersey Department of Banking and Insurance.

–  –  –

Statement to Appear on all Surplus Lines Policies, Evidence of Coverage and Renewal

Policies:

This policy is written by a surplus lines insurer and is not subject to the filing or approval requirements of the New Jersey Department of Banking and Insurance. Such a policy may contain conditions, limitations, exclusions and less favorable terms than a policy issued by an insurer granted a Certificate of Authority by the New Jersey Department of Banking and Insurance.

–  –  –

CERTIFICATION OF EFFORT TO PLACE RISK WITH AUTHORIZED INSURER

This certification shall be submitted by the originating producer with the surplus lines agent within 30 business days after the effectuation of any surplus lines insurance. The original of the certification must be maintained in the files of the surplus lines agent and a copy in the files of the producer and both must be available for inspection by the Commissioner for a period of at least five years.

______________________________________________________________________________

(Name of insured) ______________________________________________________________________________

(Address of insured) ______________________________________________________________________________

(Location of Property or Risk) ______________________________________________________________________________



Pages:   || 2 |


Similar works:

«International Journal of Labour Research 2011 Vol. 3 Issue 1 Crisis: Causes, prospects and alternatives INTERNATIONAL LABOUR OFFICE, GENEVA Copyright © International Labour Organization 2011 First published 2011 Publications of the International Labour Office enjoy copyright under Protocol 2 of the Universal Copyright Convention. Nevertheless, short excerpts from them may be reproduced without authorization, on condition that the source is indicated. For rights of reproduction or translation,...»

«Volume 4, 2001 Approved December 2000 ISSN: 1523-4320 www.ala.org/aasl/slr The Implications of Selected School Reform Approaches for School Library Media Services Gary N. Hartzell, Professor, Educational Administration & Supervision, University of Nebraska at Omaha Printed with permission from the U.S. Department of Education. This manuscript was commissioned as part of a national study, Assessment of the Role of School and Public Libraries in Support of Educational Reform, Westat, Inc.,...»

«BGS SENIOR SCHOOL SPORTS REPORTS SATURDAY 7th May BASKETBALL 2016 has seen the introduction of basketball as a winter sport for the boys. The sport has had huge popularity in the community and it is great to be able to offer the boys a new team sport to develop their skills and test themselves physically and mentally. Cam Taylor, who has an extensive rep basketball background and coaching background is coaching our highest open team the 2nds and we have also employed high level coaches with...»

«Sonia Livingstone On the continuing problems of media effects research Book section Original citation: Originally published in J. Curran and M. Gurevitch ; Mass media and society, 2nd Edition. London, UK : Edward Arnold, 1996, pp. 305 – 324. © 1996 Sonia Livingstone and Hodder Education This version available at: http://eprints.lse.ac.uk/21503/ Available in LSE Research Online: January 2009 Reproduced by permission of Edward Arnold (Publishers) Ltd. All right reserved. No unauthorised...»

«MINDA Animal User Guide Dairy MINDA Animal Livestock Improvement Corporation Limited All rights reserved. No parts of this work may be reproduced in any form or by any means graphic, electronic, or mechanical, including photocopying, recording, taping, or information storage and retrieval systems without the written permission of the publisher. Products that are referred to in this document may be either trademarks and/or registered trademarks of the respective owners. The publisher and the...»

«The Agenda document below includes hyperlinks (docket numbers highlighted in blue) that enable the user to view agenda backup documents [documents pertaining to a particular matter that have been filed with the Office of the Chief Clerk (OCC)]. To view all agenda backup in person including those documents not found in the hyperlinks below, please visit OCC at 12100 Park 35 Circle, Building F, Suite 1101 (30 TAC § 1.10). Updates to backup documents will be noted by a purple indicator. Please...»

«Response to Senator Alexander's Memo of December 6, 2011 University of Central Florida               Response to Senator Alexander’s Memorandum of   December 6, 2011    University of Central Florida    Page 1 of 495 Response to Senator Alexander's Memo of December 6, 2011 University of Central Florida Question  3:  Provide  a  review  of  the  metrics  from  the  November  4,  2011  document  from  the  Council  of  100  regarding  state ...»

«COVER PAGE FOR SAMPLE APPRAISAL NOTE – SELECT VERBIAGE IN THE REPORT HAS BEEN DELETED TO ENSURE THE PRIVACY OF CLIENT AND PROPERTY LOCATION WE HAVE ALSO DELETED THE AREA AND NEIGHBORHOOD MAPS AND SUBJECT PHOTOGRAPHS APPRAISAL REPORT On COMBINATION CONVENIENCE STORE AND SHELL® RETAIL PETROLEUM FACILITY [OMITTED] For [OMITTED] AS OF JANUARY 7, 2013 BY QUENTIN BALL APPRAISAL CO. LLC \ QUENTIN BALL, MAI QUENTIN BALL APPRAISAL CO. LLC Commercial Real Estate Appraisers Since 1965...»

«Union County, NC Confederate Pensioners Note: This file is incomplete, but I no longer have easy access to these records so I decided to publish what I have so far. The microfilm containing these records are available at many libraries, and at the NC Archives in Raleigh. Some are now available on the NC Archives website. The original papers are held at the NC Archives. Since this file is very large, I’ve had to upload it to my website in a PDF format. The names are not indexed by my site...»

«Bonus Chapter 3 NEVER JUDGE – EVER? My brothers, if one of you should wander from the truth and someone should bring him back, remember this: Whoever turns a sinner from the error of his way will save him from death and cover over a multitude of sins. James 5:19-20 NIV JUDGING OTHERS BIBLICALLY H ow can we turn a sinner from sin if we are silent? As the avalanche of immorality in America threatens to consume those in its path, each of us has choices to make regarding how to deal with the...»

«UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 DIVISION OP' CORPORATION P'INANCE February 21, 2014 Carol J. Ward Mondelez International, Inc. carol.ward@mdlz.com Re: Mondelez International, Inc.Dear Ms. Ward: This is in regard to your letter dated February 21, 2014 concerning the shareholder proposal submitted by Domini Social Investments and The Green Century Equity Fund for inclusion in Mondelez's proxy materials for its upcoming annual meeting of security holders....»

«Bringing Probity into Public Life Shailaja Chandra 1. Probity and its relationship to corruption Probity is usually regarded as being incorruptible. But probity goes further than the avoidance of being dishonest because it is determined by intangibles like personal and societal values. The dictionary meaning of probity refers to integrity, trust,character, justice, honesty, rectitude and uprightness and the use of the term has increased during the last 100, 50, 10 years as the graphs below...»





 
<<  HOME   |    CONTACTS
2017 www.thesis.dislib.info - Online materials, documents

Materials of this site are available for review, all rights belong to their respective owners.
If you do not agree with the fact that your material is placed on this site, please, email us, we will within 1-2 business days delete him.