reglab/statecodes huggingface dataset:
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 2 - INSURANCE GROUP › Subchapter 23 - ADVERTISEMENT OF LIFE INSURANCE AND ANNUITIES › Section 11:2-23.7 - Jurisdictional licensing and status of insurer; statements about the insurer

Current through Register Vol. 56, No. 14, July 15, 2024
(a) An advertisement which is intended to be seen or heard beyond the limits of the jurisdiction in which the insurer is licensed shall not imply licensing beyond such limits.
(b) An advertisement may state that an insurer is licensed in the state where the advertisement appears, provided that it does not exaggerate such fact or suggest or imply that competing insurers may not be so licensed.
(c) Such advertisements by direct mail insurers shall indicate that the insurer is licensed in a specified state or states only, or is not licensed in a specified state or states, by use of some language such as "This Company is licensed only in State A" or "This Company is not licensed in State B."
(d) An advertisement shall not create the impression that the insurer, its financial condition or status, the payment of its claims, or the merits, desirability, or advisability of its policy forms or kinds of plans of insurance are recommended or endorsed by any governmental entity. If a governmental entity has recommended or endorsed a policy form or plan, however, such fact may be stated if the entity authorized its recommendation or endorsement to be used in an advertisement and if the advertisement clearly defines the scope and extent of the recommendation.
(e) An advertisement shall not contain statements, pictures, or illustrations which are false or misleading, in fact or by implication, with respect to the assets, liabilities, insurance in force, corporate structure, financial condition, age or relative position of the insurer in the insurance business. An advertisement shall not contain a recommendation by any commercial rating system unless it clearly defines the scope and extent of the recommendation.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 2 - INSURANCE GROUP › Subchapter 23 - ADVERTISEMENT OF LIFE INSURANCE AND ANNUITIES › Section 11:2-23.8 - Insurer's responsibility and control; advertising file; certificate of compliance

Current through Register Vol. 56, No. 14, July 15, 2024
(a) All advertisements, regardless of by whom written, created or designed, shall be the responsibility of the insurer sponsoring the same.
(b) Every insurer shall at all times maintain complete control over the content, form and method of distribution of all advertisements of its contracts.
(c) Each insurer shall maintain at its home or principal office a complete file containing every printed, published or prepared advertisement of blanket, franchise, and group policies hereafter distributed in this state, with a notation attached to each such advertisement which shall indicate the manner and extent of distribution and the form number of any policy advertised.
(d) Such file shall be subject to regular and periodic inspection by the Department.
(e) All such advertisements shall be maintained in said file for a period of five years from their last use.
(f) Each insurer required to file an annual statement which is now or which hereafter becomes subject to the provisions of this subchapter must file with the Department, together with its annual statement, a certificate executed by an authorized officer of the insurer wherein it is stated that to the best of his knowledge, information and belief the advertisements were disseminated by the insurer during the preceding statement year complied or were made to comply in all respects with the provisions of the insurance laws of this State as implemented and interpreted by this subchapter.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 2 - INSURANCE GROUP › Subchapter 23 - ADVERTISEMENT OF LIFE INSURANCE AND ANNUITIES › Section 11:2-23.9 - Failure to comply

Current through Register Vol. 56, No. 14, July 15, 2024
Failure to comply with the provisions of this subchapter shall subject the offender to the penalties set forth under 17B:30-17 and any other penalty authorized by law.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 2 - INSURANCE GROUP › Subchapter 23 - ADVERTISEMENT OF LIFE INSURANCE AND ANNUITIES › Section 11:2-23.10 - Severability

Current through Register Vol. 56, No. 14, July 15, 2024
If any provision or clause of this subchapter or the application thereof to any person or situation is held invalid, such invalidity shall not affect any other provision or application of the subchapter which can be given effect without the invalid provision or application, and to this end the provisions of this subchapter are declared to be severable.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 2 - INSURANCE GROUP › Subchapter 23A - MILITARY SALES PRACTICES › Section 11:2-23A.1 - Purpose

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The purpose of this subchapter is to set forth standards to protect active duty service members of the United States Armed Forces from dishonest and predatory insurance sales practices by declaring certain identified practices to be false, misleading, deceptive or unfair.
(b) Nothing in this subchapter shall be construed to create or imply a private cause of action for a violation of this subchapter.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 2 - INSURANCE GROUP › Subchapter 23A - MILITARY SALES PRACTICES › Section 11:2-23A.2 - Scope

Current through Register Vol. 56, No. 14, July 15, 2024
This subchapter shall apply only to the solicitation or sale of any life insurance or annuity product by an insurer or insurance producer to an active duty service member of the United States Armed Forces.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 2 - INSURANCE GROUP › Subchapter 23A - MILITARY SALES PRACTICES › Section 11:2-23A.3 - Exemptions

Current through Register Vol. 56, No. 14, July 15, 2024
(a) This subchapter shall not apply to solicitations or sales involving:
1. Credit insurance;
2. Group life insurance or group annuities where there is no in-person, face-to-face solicitation of individuals by an insurance producer or where the contract or certificate does not include a side fund;
3. An application to the existing insurer that issued the existing policy or contract when a contractual change or a conversion privilege is being exercised; when the existing policy or contract is being replaced by the same insurer pursuant to a program filed with and approved by the commissioner; or when a term conversion privilege is exercised among corporate affiliates;
4. Individual stand-alone health policies, including disability income policies;
5. Contracts offered by Service Members' Group Life Insurance (SGLI) or Veterans' Group Life Insurance (VGLI), as authorized by 38 U.S.C. §§
											1965 et seq.;
6. Life insurance contracts offered through or by a non-profit military association, qualifying under Section 501(c)(23) of the Internal Revenue Code (IRC), and which are not underwritten by an insurer; or
7. Contracts used to fund:
i. An employee pension or welfare benefit plan that is covered by the Employee Retirement and Income Security Act (ERISA) Pub. L. 93-406;
ii. A plan described by Sections 401(a), 401(k), 403(b), 408(k) or 408(p) of the IRC, as amended, if established or maintained by an employer;
iii. A government or church plan defined in Section 414 of the IRC, a government or church welfare benefit plan, or a deferred compensation plan of a state or local government or tax exempt organization under Section 457 of the IRC;
iv. A nonqualified deferred compensation arrangement established or maintained by an employer or plan sponsor;
v. Settlements of or assumptions of liabilities associated with personal injury litigation or any dispute or claim resolution process; or
vi. Prearranged funeral contracts.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 2 - INSURANCE GROUP › Subchapter 23A - MILITARY SALES PRACTICES › Section 11:2-23A.5 - Practices declared false, misleading, deceptive or unfair on a military installation

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The following acts or practices when committed on a military installation by an insurer or insurance producer with respect to the in-person, face-to-face solicitation of life insurance are declared to be false, misleading, deceptive or unfair:
1. Knowingly soliciting the purchase of any life insurance product door-to-door or without first establishing a specific appointment for each meeting with the prospective purchaser;
2. Soliciting service members in a group or "mass" audience or in a "captive" audience where attendance is not voluntary;
3. Knowingly making appointments with or soliciting service members during their normally scheduled duty hours;
4. Making appointments with or soliciting service members in barracks, day rooms, unit areas, or transient personnel housing or other areas where the installation commander has prohibited solicitation;
5. Soliciting the sale of life insurance without first obtaining permission from the installation commander or the commander's designee;
6. Posting unauthorized bulletins, notices or advertisements;
7. Failing to present DD Form 2885, Personal Commercial Solicitation Evaluation, to service members solicited or encouraging service members solicited not to complete or submit a DD Form 2885; and
8. Knowingly accepting an application for life insurance or issuing a policy of life insurance on the life of an enlisted member of the United States Armed Forces without first obtaining for the insurer's files a completed copy of any required form that confirms that the applicant has received counseling or fulfilled any other similar requirement for the sale of life insurance established by regulations, directives or rules of the DoD or any branch of the Armed Forces.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 2 - INSURANCE GROUP › Subchapter 23A - MILITARY SALES PRACTICES › Section 11:2-23A.7 - Severability

Current through Register Vol. 56, No. 14, July 15, 2024
If any provision of this subchapter or the application thereof to any person or circumstance is held invalid for any reason, the invalidity shall not affect any other provisions or any other application of this subchapter which can be given effect without the invalid provisions or application. To this end, all provisions of this subchapter are declared to be severable.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 2 - INSURANCE GROUP › Subchapter 26 - ANNUAL FINANCIAL REPORTING › Section 11:2-26.1 - Purpose

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The purpose of this subchapter is to improve the Department's surveillance of the financial position of insurers by requiring:
1. An annual audit by independent certified public accountants of the financial statements reporting the financial position and the results of operations of insurers;
2. Communication of internal control related matters noted in an audit; and
3. Management's report of internal control over financial reporting.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 2 - INSURANCE GROUP › Subchapter 26 - ANNUAL FINANCIAL REPORTING › Section 11:2-26.2 - Scope

Current through Register Vol. 56, No. 14, July 15, 2024
This subchapter shall apply to all insurers transacting business in the State of New Jersey except as provided at N.J.A.C. 11:2-26.18.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 2 - INSURANCE GROUP › Subchapter 26 - ANNUAL FINANCIAL REPORTING › Section 11:2-26.4 - Filing of annual audited financial reports; extensions for filing of annual audited financial reports and audit committee appointment

Current through Register Vol. 56, No. 14, July 15, 2024
(a) All insurers (unless exempted pursuant to N.J.A.C. 11:2-26.18) shall have an annual audit by an independent certified public accountant and shall file an audited financial report with the Commissioner on or before June 1 for the year ended December 31 immediately preceding. The Commissioner may require an insurer to file an audited financial report earlier than June 1 upon 90 days advance written notice to the insurer.
(b) Extensions of the June 1 filing date may be granted by the Commissioner for 30 day periods upon showing by the insurer and its independent certified public accountant the reasons for requesting such extension and determination by the Commissioner of good cause for an extension. The request for an extension must be submitted in writing not less than 10 days prior to the due date of the financial report in sufficient detail to permit the Commissioner to make an informed decision with respect to the requested extension.
(c) If an extension is granted in accordance with the provisions in (b) above, a similar extension of 30 days is granted for the filing of management's report of internal control over financial reporting.
(d) Every insurer required to file an annual audited financial report pursuant to this subchapter shall designate a group of individuals as constituting its audit committee as that term is defined in 11:2-26.3. The audit committee of an entity that controls an insurer may be deemed to be the insurer's audit committee for purposes of this subchapter at the election of the controlling person.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 2 - INSURANCE GROUP › Subchapter 26 - ANNUAL FINANCIAL REPORTING › Section 11:2-26.5 - Contents of annual audited financial report

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The annual audited financial report shall reflect the financial position of the insurer as of the end of the most recent calendar year and the results of its operations, cash flows and changes in capital and surplus for such calendar year in conformity with statutory accounting practices prescribed, or otherwise permitted, by the Department.
(b) The annual audited financial report shall include:
1. A report of an independent certified public accountant;
2. A balance sheet reporting admitted assets, liabilities, capital and surplus;
3. A statement of operations;
4. A statement of cash flows;
5. A statement of changes in capital and surplus; and
6. Notes to financial statements. These notes shall be those required by the appropriate National Association of Insurance Commissioners (NAIC) Annual Statement Instructions and the NAIC Accounting Practices and Procedures Manual. The notes shall also include a reconciliation of differences, if any, between the audited statutory financial statements and the annual statement filed pursuant to 17:23-1 and 17B:21-1 with a written description of the nature of these differences.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 2 - INSURANCE GROUP › Subchapter 26 - ANNUAL FINANCIAL REPORTING › Section 11:2-26.6 - Qualifications of independent certified public accountants

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The Commissioner shall not recognize any person or firm as a qualified independent certified public accountant if the person or firm:
1. Is not in good standing with the American Institute of Certified Public Accountants (AICPA) and in all states in which the accountant is licensed to practice or, for alien insurers, if the person or firm is not a chartered or similarly certified accountant; or
2. Has either directly or indirectly entered into an agreement of indemnity or release from liability (collectively referred to as indemnification) with respect to the audit of the insurer.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 2 - INSURANCE GROUP › Subchapter 26 - ANNUAL FINANCIAL REPORTING › Section 11:2-26.7 - Certification by independent certified public accountant

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Each insurer required by this subchapter to file an annual audited financial report shall within 60 days after becoming subject to such requirement, register with the Commissioner in writing the name and address of the independent certified public accountant or accounting firm retained to conduct the annual audit set forth in this subchapter. Insurers not retaining an independent certified public accountant on the effective date of this rule as amended shall register the name and address of their retained certified public accountant not less than six months before the date when the audited financial report is to be filed.
(b) The insurer shall also obtain a letter from the accountant, and file a copy with the Commissioner, stating that the accountant is aware of the provisions of the insurance statutes and administrative rules of this State that relate to accounting and financial matters. The accountant shall also certify that he or she will express his or her opinion on the financial statements in the terms of their conformity to the statutory accounting practices prescribed or otherwise permitted by the Department and specify such exceptions as he or she may believe appropriate.
(c) In addition to the requirements in (a) and (b) above, if the accountant for the immediately preceding filed audited financial report is dismissed or resigns, the insurer shall within five business days notify the Department of this event. The insurer shall also furnish the Commissioner with a separate letter within 10 business days of the above notification stating whether in the 24 months preceding such event there were any disagreements with the former accountant on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure; which disagreements, if not resolved to the satisfaction of the former accountant, would have caused him to make reference to the subject matter of the disagreement in connection with his opinion. The disagreements required to be reported in response to this subsection include both those resolved to the former accountant's satisfaction and those not resolved to the former accountant's satisfaction. Disagreements contemplated by this subsection are those that occur at the decision-making level (that is, between personnel of the insurer responsible for presentation of its financial statements and personnel of the accounting firm responsible for rendering its report). The insurer shall also request in writing that such former accountant furnish a letter addressed to the insurer stating whether the accountant agrees with the statements contained in the insurer's letter and, if not, stating the reasons for which he does not agree; and the insurer shall furnish such responsive letter from the former accountant to the Commissioner together with its own.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 2 - INSURANCE GROUP › Subchapter 26 - ANNUAL FINANCIAL REPORTING › Section 11:2-26.8 - Consolidated or combined audits

Current through Register Vol. 56, No. 14, July 15, 2024
(a) An insurer may make written application to the Commissioner for approval to file audited consolidated or combined financial statements in lieu of separate annual audited financial statements if the insurer is part of a group of insurance companies which utilizes a pooling or 100 percent reinsurance agreement that affects the solvency and integrity of the insurer's reserves and such insurer cedes all of its direct and assumed business to the pool. In such cases, a columnar consolidating or combining worksheet shall be filed with the report as follows:
1. Amounts shown on the consolidated or combined audited financial report shall be shown on the worksheet;
2. Amounts for each insurer subject to this section shall be stated separately;
3. Noninsurance operations may be shown on the worksheet on a combined or individual basis;
4. Explanations of consolidating and eliminating entries shall be included; and
5. A reconciliation shall be included of any differences between the amounts shown in the individual insurer columns of the worksheet and comparable amounts shown on the annual statements of the insurers.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 2 - INSURANCE GROUP › Subchapter 26 - ANNUAL FINANCIAL REPORTING › Section 11:2-26.9 - Scope of audit and report

Current through Register Vol. 56, No. 14, July 15, 2024
Financial statements furnished pursuant to N.J.A.C. 11:2-26.5shall be examined by the independent certified public accountant. The audit of the insurer's financial statements shall be conducted in accordance with generally accepted auditing standards. In accordance with Section 319 of the Professional Standards of the AICPA, Consideration of Internal Control in a Financial Statement Audit, the independent certified public accountant should obtain an understanding of internal control sufficient to plan the audit. To the extent required by AU 319, for those insurers required to file a management's report of internal control over financial reporting pursuant to N.J.A.C. 11:2-26.17, the independent certified public accountant should consider (as that term is defined in Statement on Auditing Standards (SAS) No. 102, Defining Professional Requirements in Statements on Auditing Standards or its replacement) the most recently available report in planning and performing the audit of the statutory financial statements. Consideration shall be given to the procedures illustrated in the Financial Condition Examiner's Handbook promulgated by the National Association of Insurance Commissioners as the independent certified public accountant deems necessary.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 2 - INSURANCE GROUP › Subchapter 26 - ANNUAL FINANCIAL REPORTING › Section 11:2-26.10 - Notification of adverse financial condition

Current through Register Vol. 56, No. 14, July 15, 2024
(a) An insurer required to furnish the annual audited financial report shall require the independent certified public accountant to report in writing within five business days to the board of directors or its audit committee any determination by the independent certified public accountant that the insurer has materially misstated its financial condition as reported to the Commissioner as of the balance sheet date currently under audit or that the insurer does not meet the minimum capital and surplus requirements as of that date. An insurer who has received a report pursuant to this section shall forward a copy of the report to the Commissioner within five business days of receipt of such report and shall provide the independent certified public accountant making the report with evidence of the report being furnished to the Commissioner. If the independent certified public accountant fails to receive such evidence within the required five-business-day period, the independent certified public accountant shall furnish to the Commissioner a copy of its report within the next five business days. No independent certified public accountant shall be liable in any manner to any person for any statement made in connection with this subsection if such statement is made in good faith in compliance with this subsection.
(b) If the accountant, subsequent to the date of the audited financial report filed pursuant to this subchapter, becomes aware of facts which might have affected his or her report, the accountant shall take such action as prescribed in Volume 1, Section AU 561 of the Professional Standards of the American Institute of Certified Public Accountants, incorporated herein by reference.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 2 - INSURANCE GROUP › Subchapter 26 - ANNUAL FINANCIAL REPORTING › Section 11:2-26.11 - Communication of internal control related matters noted in an audit

Current through Register Vol. 56, No. 14, July 15, 2024
(a) In addition to the annual audited financial report, each insurer shall file with the Commissioner a written communication as to any unremediated material weaknesses in its internal control over financial reporting noted during the audit. Such communication shall be prepared by the accountant within 60 days after the filing of the annual audited financial report, and shall contain a description of any unremediated material weakness (as that term is defined by the Statement on Auditing Standard 60, Communication of Internal Control Related Matters Noted in an Audit, or its replacement) as of December 31 immediately preceding (so as to coincide with the audited financial report discussed in 11:2-26.4 ) in the insurer's internal control over financial reporting noted by the accountant during the course of their audit of the financial statements. If no unremediated material weaknesses were noted, the communication should so state.
(b) The insurer is required to provide a description of remedial actions taken or proposed to correct unremediated material weaknesses, if the actions are not described in the accountant's communication.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 2 - INSURANCE GROUP › Subchapter 26 - ANNUAL FINANCIAL REPORTING › Section 11:2-26.12 - Accountant's letter of qualifications

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The accountant shall furnish the insurer in connection with, and for inclusion in, the filing of the annual audited financial report, a letter stating:
1. That the accountant is independent with respect to the insurer and conforms to the standards of the profession as contained in the Code of Professional Ethics and pronouncements of the American Institute of Certified Public Accountants (AICPA) and the Rules of Professional Conduct of the New Jersey Board of Public Accountancy, or similar code;
2. The background and experience in general, and the experience in audits of insurers of the staff assigned to the engagement and whether each is an independent certified public accountant. Nothing within this rule shall be construed as prohibiting the accountant from utilizing such staff as he or she deems appropriate where such use is consistent with the standards prescribed by generally accepted auditing standards;
3. That the accountant understands the annual audited financial report and the accountant's opinion thereon will be filed in compliance with this subchapter, and that the Commissioner will be relying on this information in the monitoring and regulation of the financial position of insurers;
4. That the accountant consents to the requirements of 11:2-26.1 3 and that the accountant consents and agrees to make available for review by the Commissioner, his or her designee or his or her appointed agent, the workpapers, as defined in 11:2-26.3;
5. A representation that the accountant is properly licensed by an appropriate state licensing authority and that he is a member in good standing in the AICPA; and
6. A representation that the accountant is in compliance with the requirements of 11:2-26.6.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 2 - INSURANCE GROUP › Subchapter 26 - ANNUAL FINANCIAL REPORTING › Section 11:2-26.13 - Availability and maintenance of independent certified public accountants' workpapers

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Every insurer required to file an audited financial report pursuant to this subchapter shall require the accountant to make available for review by the Commissioner, all the workpapers prepared in the conduct of his or her audit and any communications related to the audit between the accountant and the insurer, at the offices of the insurer, at the Department or at any other reasonable place designated by the Commissioner. The insurer shall require that the accountant retain the audit workpapers and communications until the Department has filed a Report on Examination covering the period of the audit and determined that the audit workpapers and communications need no longer be retained or for no longer than seven years from the date the accountant submits the audit report to the insurer, whichever occurs first.
(b) In the conduct of the periodic review by the Commissioner, photocopies of pertinent audit workpapers may be made and retained by the Commissioner. Such reviews by the Commissioner shall be considered investigations and all working papers and communications obtained during the course of such investigations shall be afforded the same confidentiality as other examination workpapers generated by the Department.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 2 - INSURANCE GROUP › Subchapter 26 - ANNUAL FINANCIAL REPORTING › Section 11:2-26.15 - Internal audit function requirements

Current through Register Vol. 56, No. 14, July 15, 2024
(a) An insurer is exempt from the requirements of this section if:
1. The insurer has annual direct written and unaffiliated assumed premiums, including international direct and assumed premiums, but excluding premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, less than $ 500,000,000; and
2. If the insurer is a member of a group of insurers, the group has annual direct written and unaffiliated assumed premiums, including international direct and assumed premiums, but excluding premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, less than $ 1,000,000,000.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 2 - INSURANCE GROUP › Subchapter 26 - ANNUAL FINANCIAL REPORTING › Section 11:2-26.16 - Conduct of insurer in connection with the preparation of required reports and documents

Current through Register Vol. 56, No. 14, July 15, 2024
(a) No director or officer of an insurer shall, directly or indirectly:
1. Make or cause to be made a materially false or misleading statement to an accountant in connection with any audit, review or communication required under this subchapter; or
2. Omit to state, or cause another person to omit to state, any material fact necessary in order to make statements made, in light of the circumstances under which the statements were made, not misleading to an accountant in connection with any audit, review or communication required under this subchapter.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 2 - INSURANCE GROUP › Subchapter 26 - ANNUAL FINANCIAL REPORTING › Section 11:2-26.18 - Exemptions and effective dates

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Insurers having direct premiums written in this State of less than $ 1,000,000 in any calendar year and less than 1,000 policyholders or certificateholders of directly written policies nationwide at the end of such calendar year shall be exempt from this subchapter for such year (unless the Commissioner makes a specific finding that compliance is necessary for the Commissioner to carry out statutory responsibilities) except that insurers having assumed premiums pursuant to contracts and/or treaties of reinsurance of $ 1,000,000 or more will not be so exempt.
(b) Foreign or alien insurers filing audited financial reports in another state, pursuant to such other states requirements on audited financial reports which have been found by the Commissioner to be substantially similar to the requirements herein, are exempt from compliance with this subchapter if:
1.A copy of the audited financial report, communication of internal control related matters noted in an audit, and the accountants letter of qualifications which are filed with such other state are filed with the Commissioner in accordance with the filing dates specified in 11:2-26.4, 26.11, and 26.12, respectively (Canadian insurers may submit accountants reports as filed with the Canadian Dominion Department of Insurance). It shall not be necessary for copies of the documents referenced in this paragraph to be filed with the Commissioner if the audited financial report of such foreign or alien insurer contains an "unqualified opinion" as set forth in the applicable National Association of Insurance Commissioners (NAIC) Financial Analysis Handbook in use at the time such report is due and there is no unremediated material weakness noted in the report as set forth in 11:2-26.11; and
2. A copy of any notification of adverse financial condition report filed with such other state is filed with the Commissioner within the time specified in 11:2-26.1 0.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 2 - INSURANCE GROUP › Subchapter 26 - ANNUAL FINANCIAL REPORTING › Section 11:2-26.19 - Alien insurers

Current through Register Vol. 56, No. 14, July 15, 2024
(a) In the case of alien insurers, the annual audited financial report shall be defined as the annual statement of total business on the form filed by such companies with their domiciliary supervision authority duly audited by an independent chartered or similarly certified accountant.
(b) For such insurers, the letter required in 11:2-26.7 shall state that the accountant is aware of the requirements relating to the annual audited statement filed with the Commissioner pursuant to 11:2-26.4 and shall affirm that the opinion expressed is in conformity with such requirements.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 2 - INSURANCE GROUP › Subchapter 26 - ANNUAL FINANCIAL REPORTING › Section 11:2-26.20 - Confidentiality of documents

Current through Register Vol. 56, No. 14, July 15, 2024
All documents submitted to the Commissioner pursuant to this subchapter are confidential and not public documents as defined in the Public Records Act, 47:1A-1 et seq.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 2 - INSURANCE GROUP › Subchapter 26 - ANNUAL FINANCIAL REPORTING › Section 11:2-26.22 - Severability

Current through Register Vol. 56, No. 14, July 15, 2024
If any section of this subchapter is held to be invalid, the remaining parts of this subchapter are not to be affected.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 2 - INSURANCE GROUP › Subchapter 27 - DETERMINATION OF INSURERS IN A HAZARDOUS FINANCIAL CONDITION › Section 11:2-27.1 - Purpose and scope

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The purpose of this subchapter is to set forth the factors which the Commissioner shall consider in determining whether an insurer is in such condition as defined herein as to render the continuation of its business hazardous to its policyholders, creditors, or the general public. A determination of hazardous financial condition provides one of the grounds upon which the Commissioner may seek an order from the Superior Court to rehabilitate, liquidate the business, or conserve the assets within this State of domestic, foreign, or alien insurers pursuant to 17:30C-1 et seq. and 17B:32-31 et seq., or upon which an insurer may become subject to administrative supervision pursuant to 17:51A-1 et seq., and provides one of the grounds upon which the Commissioner may take action to revoke or nonrenew an insurer's authority to transact insurance in this State, pursuant to law, including, but not limited to, 17:32-2 and 17B:23-2.
(b) This subchapter shall apply to all domestic, foreign, and alien insurers and all other entities subject to 17:30C-1 et seq., 17B:32-31 et seq., or 17:51A-1 et seq.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 2 - INSURANCE GROUP › Subchapter 27 - DETERMINATION OF INSURERS IN A HAZARDOUS FINANCIAL CONDITION › Section 11:2-27.2 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:
AVR means the asset valuation reserve calculated for the purpose of completing the NAIC annual statement in accordance with its instructions and the Accounting Practices and Procedures Manual.
"Commissioner" means the Commissioner of the New Jersey Department of Banking and Insurance.
"Control" means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of the insurer as defined in 17:27A-1.
"Department" means the New Jersey Department of Banking and Insurance.
"Hazardous financial condition" means that, based on its present or reasonably anticipated financial condition, an insurer, although not yet financially impaired or insolvent, is unlikely to be able:
1. To meet obligations to its policyholders, certificate holders, and other insureds with respect to known claims and reasonably anticipated claims; or
2. To pay other obligations in the normal course of business.
"Insurer" means a person subject to the insurance supervisory authority of, or to liquidation, rehabilitation, reorganization, or conservation by, the Commissioner pursuant to 17:30C-1 et seq., 17B:32-31 et seq. or 17:51A-1 et seq., or by the equivalent insurance supervisory official of another state. "Insurer" includes all persons purporting to be engaged in the business of insurance as an insurer in this State and all persons in the process of organization to become insurers.
"Life and health insurer" means an insurer authorized or admitted pursuant to the provisions of Title 17B of the Revised Statutes to solely transact the business of life insurance, health insurance or annuities in this State as those terms are defined in 17B:17-3, 17B:17-4 and 17B:17-5, respectively.
"NAIC" means the National Association of Insurance Commissioners.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 2 - INSURANCE GROUP › Subchapter 27 - DETERMINATION OF INSURERS IN A HAZARDOUS FINANCIAL CONDITION › Section 11:2-27.4 - Determination of hazardous financial condition; corrective action

Current through Register Vol. 56, No. 14, July 15, 2024
(a) If the Commissioner determines that the continued operation of an insurer may be hazardous to its policyholders, creditors, or the general public in this State, the Commissioner may, upon such a determination, subject the insurer to administrative supervision pursuant to 17:51A-1 et seq. and may issue an order requiring the insurer to take such actions as the Commissioner deems necessary to abate such determination, including, but not limited to:
1. Reduce the total amount of present and potential liability for policy benefits by reinsurance;
2. Reduce, suspend or limit the volume of business being accepted or renewed;
3. Reduce general insurance and commission expenses by specified methods;
4. Increase the insurer's capital and surplus;
5. Suspend or limit the declaration and payment of dividends by an insurer to its stockholders or to its policyholders;
6. File reports in a form acceptable to the Commissioner concerning the market value of an insurer's assets;
7. Limit or withdraw from certain investments or discontinue certain investment practices to the extent the Commissioner deems necessary;
8. Document the adequacy of premium rates in relation to the risks insured;
9. File, in addition to regular annual statements, interim financial reports on the form adopted by the NAIC or in such format as prescribed by the Commissioner;
10. Correct corporate governance practice deficiencies, and adopt and utilize governance practices acceptable to the Commissioner;
11. Provide a business plan to the Commissioner in order to continue to transact business in this State;
12. Notwithstanding any other provision of law limiting the frequency or amount of premium rate adjustments, adjust rates for any non-life insurance product written by the insurer that the Commissioner considers necessary to improve the financial condition of the insurer; or
13. Take such other actions as the Commissioner may deem necessary in a particular case to protect the insurer's policyholders, creditors, or the general public.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 2 - INSURANCE GROUP › Subchapter 28 - CREDIT FOR REINSURANCE › Section 11:2-28.1 - Purpose and scope

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The purpose of these rules is to implement the provisions of 17:51B-1 et seq. by establishing procedures to be employed by insurers which cede risks to appropriate reinsurers and which assume the risk from the ceding insurers to whom these rules apply.
(b) This subchapter applies to all insurers which transact business in this State, except as described in (b)2 below, including insurers which are domiciled in this State. This subchapter also applies to insurers which are either licensed to transact business in this State or are eligible to write surplus lines insurance in this State, and which in either case are domiciled in a state or country which does not employ standards regarding credit for reinsurance substantially similar to the standards set forth herein.
1. For a life and health ceding insurer to qualify for a credit for reinsurance in accordance with this subchapter, the ceding insurer shall also comply with the requirements of 17:51B-1 et seq. and all administrative rules promulgated thereunder concerning the regulation of life and health reinsurance contracts.
2. Where an insurer which is either licensed to transact business in this State or is an eligible surplus lines insurer in this State and in either case the state in which it is domiciled is accredited by the NAIC or employs standards regarding credit for reinsurance as determined by the Commissioner to be substantially similar to the standards set forth in these rules, the insurer shall comply with the rules regarding credit for reinsurance in its state of domicile.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 2 - INSURANCE GROUP › Subchapter 28 - CREDIT FOR REINSURANCE › Section 11:2-28.3 - Reinsurer licensed in New Jersey

Current through Register Vol. 56, No. 14, July 15, 2024
An insurer shall be permitted to take a credit for reinsurance ceded to an assuming insurer where the assuming insurer is licensed to transact business in this State as of the date of the ceding insurer's statutory financial statement, except as limited in accordance with N.J.A.C. 11:2-27.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 2 - INSURANCE GROUP › Subchapter 28 - CREDIT FOR REINSURANCE › Section 11:2-28.4 - Reinsurer accredited in New Jersey

Current through Register Vol. 56, No. 14, July 15, 2024
(a) An insurer shall be permitted to take a credit for reinsurance ceded to an assuming insurer where the assuming insurer is accredited as a reinsurer in this State as of the date of the ceding insurer's statutory financial statement. An accredited reinsurer is one which meets all of the following standards:
1. Files with the Commissioner a letter requesting approval for accreditation and listing the information upon which it will rely and is submitting in connection therewith;
2. Submits a non-refundable filing fee made payable to Treasurer, State of New Jersey, of $ 1,000 for an initial filing and $ 1,000 for a renewal filing;
3. Files with the Commissioner a properly executed form AR-1 (incorporated herein by reference as Exhibit 1 in the Appendix) which establishes that it submits to this State's jurisdiction and this State's authority to examine its books and records;
4. Files with the Commissioner a certified copy of a certificate of authority, a certificate of compliance or an equivalent document which has been properly notarized, as evidence that it is currently licensed to transact insurance or reinsurance in at least one state or, in the case of a United States branch of an assuming alien insurer, is entered through and licensed to transact insurance or reinsurance in at least one state;
5. Files annually with the Commissioner:
i. A copy of its most recent annual statement filed with the insurance department of its state of domicile;
ii. Its most recent audited financial statement;
iii. A current actuarial opinion which certifies:
(1) For a property and casualty insurer, to the adequacy of the loss and loss adjustment expense reserves; or
(2) For a life and health assuming insurer that:
(A) Its policy reserves are adequate;
(B) It satisfies all minimum capital and surplus requirements in all states in which it is licensed to transact business; and
(C) That its capital and surplus levels are adequate relative to its distribution by type and level of risk of its invested assets and the business being written, and attaches any and all documents in support thereof; and
iv. The quarterly statement for the quarter immediately preceding the application, except for renewals which shall require the quarterly statement due May 15;
6. Either:
i. Maintains a surplus as regards policyholders in an amount not less than $ 20,000,000 and whose accreditation has not been denied by the Commissioner within 120 days of filing its submission with the Commissioner; or
ii. Maintains a surplus as regards policyholders of less than $ 20,000,000 whose accreditation has been approved by the Commissioner; and
7. Provides any additional information which may include, but is not limited to, information which the Commissioner deems necessary to ensure that the particular reinsurer's condition and methods of operation are not such as would render its operations hazardous to the public or its policyholders.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 2 - INSURANCE GROUP › Subchapter 28 - CREDIT FOR REINSURANCE › Section 11:2-28.7 - Credit for reinsurance required by law

Current through Register Vol. 56, No. 14, July 15, 2024
(a) An insurer may be permitted to take a credit for reinsurance ceded to an assuming insurer which does not meet any of the requirements set forth at N.J.A.C. 11:2-28.3, 28.4, 28.5, 28.6, 28.7A, or 28.7E, but only with respect to the insurance of risks located in jurisdictions where such reinsurance is required or provided by the applicable law or regulation of that jurisdiction. As used in this section, "jurisdiction" means any state, district, or territory of the United States and any lawful national government.
(b) A credit may taken for insurance ceded by a ceding insurer to a state owned or controlled insurance or reinsurance company or a ceding company participating in pools, guaranty funds or joint underwriting associations required by statute, regulation or administrative order.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 2 - INSURANCE GROUP › Subchapter 28 - CREDIT FOR REINSURANCE › Section 11:2-28.7A - Credit for reinsurance from certified reinsurers

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Pursuant to N.J.S.A. 17:51B-2.g, the Commissioner shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer not meeting the requirements set forth at N.J.A.C. 11:2-28.3, 28.4, 28.5, or 28.6 that has been certified as a reinsurer in this State at all times for which statutory financial statement credit for reinsurance is claimed pursuant to this section. The credit allowed shall be based upon the security held by or on behalf of the ceding insurer, in accordance with a rating assigned to the certified reinsurer pursuant to this section. The security shall be in a form consistent with the provisions at N.J.S.A. 17:51B-2.g and this subchapter. The amount of security required in order for full credit to be allowed shall correspond with the requirements as set forth at Exhibit A in the Appendix to this subchapter, incorporated herein by reference.
(b) Affiliated reinsurance transactions shall receive the same opportunity for reduced security requirements as all other reinsurance transactions.
(c) The Commissioner shall require the certified reinsurer to post 100 percent security, for the benefit of the ceding insurer or its estate, upon the entry of an order of rehabilitation, liquidation, or conservation against the ceding insurer.
(d) In order to facilitate the prompt payment of claims, a certified reinsurer shall not be required to post security for catastrophe recoverables for a period of one year from the date of the first instance of a liability reserve entry by the ceding company as a result of a loss from a catastrophic occurrence as recognized by the Commissioner. The one-year deferral period is contingent upon the certified reinsurer continuing to pay claims in a timely manner. Reinsurance recoverables for only the following lines of business as reported on the NAIC annual financial statement related specifically to the catastrophic occurrence will be included in the deferral:
1. Line 1: Fire;
2. Line 2: Allied Lines;
3. Line 3: Farmowners multiple peril;
4. Line 4: Homeowners multiple peril;
5. Line 5: Commercial multiple peril;
6. Line 9: Inland Marine;
7. Line 12: Earthquake; and
8. Line 21: Auto physical damage.