New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 17 - PRODUCER LICENSING › Subchapter 1 - GENERAL PROVISIONS › Section 11:17-1.2 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Words and terms contained in the Act, when used in this chapter, shall have the meanings as defined in the Act, unless the context clearly indicates otherwise.
(b) The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.
"Act" means the New Jersey Insurance Producer Licensing Act of 2001, 17:22A-26 et seq.
"Administrative Procedure Act" means the Act concerning practices and proceedings of New Jersey public agencies pursuant to 52:14B-1 et seq.
"Authorized insurance education director" or "insurance education director" means the person designated by the insurance education provider and approved by the Department to be responsible for the program's compliance with these rules and for the program's operations.
"Authorized personnel" means any person designated by the insurance education provider and approved by the Department to be authorized to submit insurance education provider certification forms, schedules, course approval forms and other information not specifically required to be provided by the insurance education director on behalf of the insurance education provider.
"Authorized submitter" means a person authorized by a producer or applicant to enter the producer or applicant's information onto electronic online applications, renewals and other electronic transactions that are approved for use by the Department. An authorized submitter shall obtain all information required in the electronic transaction from the applicant or named producer or, for business entities, from a designated licensed responsible producer, officer, director, partner or owner of ten percent or more of the business entity.
"Branch office" means an office in New Jersey other than a principal office where a licensee conducts insurance business.
"Business entity" means a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity.
"Business name" means the legal name of a business entity and any trade or fictitious name under which a licensee or license applicant conducts or intends to conduct insurance business.
"Car rental insurance" means insurance offered, sold or solicited in connection with and incidental to the rental of rental cars for a specified duration, whether at the rental office or by pre-selection of coverage in master, corporate, group or individual agreements that: is non-transferable; applies only to the rental car that is the subject of the rental agreement; and is limited to the following kinds of insurance:
1. Personal accident insurance for renters and other rental car occupants, for accidental death or dismemberment, and for medical expenses resulting from an accident that occurs with a rental car during the rental period;
2. Liability insurance that provides protection to the renters and other authorized drivers of a rental car for liability arising from the operation or use of the rental car during the rental period;
3. Personal effects insurance that provides coverage to renters and other vehicle occupants for loss of, or damage to, personal effects in the rental car during the rental period; or
4. Roadside assistance and emergency sickness protection insurance.
"Contact course" or "class" means a classroom presentation, seminar, lecture or teleconference with monitored attendance and an instructor present.
"Controlling interest" means, for purposes of N.J.S.A. 17:22A-32e, that an officer, director, partner or owner of an entity filing for a producer license owns 10 percent or more of that entity.
"Credit hour," "credit education unit" or "CEU" means one hour of credit based on classroom attendance or an approved hour for seminars and self-study calculated in accordance with the provisions of 11:17-3.6(b).
"Credit insurance" means insurance coverages for credit health and credit life as defined in 17B:29-2, credit disability, credit unemployment, involuntary unemployment, mortgage life, mortgage guaranty, mortgage disability, automobile dealer GAP, credit property and any other insurance offered in connection with the extension of credit that is limited wholly or partially to reducing or extinguishing that credit obligation.
"Department" means the New Jersey Department of Banking and Insurance.
"Electronic online submission" means the submission of an initial application, renewal, or any other information required by this chapter submitted online through the Department's website,
www.dobi.nj.gov
, in accordance with the instructions therein.
"First-time applicant" means any person who was not licensed in New Jersey during the 12-month period prior to application.
"Home state" means the District of Columbia and any state or territory of the United States in which an insurance producer maintains his or her principal place of residence or principal place of business and is licensed to act as a resident insurance producer.
"Insurance education program" or "program" means an insurance education provider's overall curriculum.
"Insurance education provider" means any insurance school, authorized insurer, recognized producer or insurance trade association, accredited college, university or trade school, or other institution or organization that is approved by the Department in accordance with 11:17-3.1 to provide prelicensing or continuing education for insurance producers in this State.
"Insurance related conduct" includes selling, soliciting, negotiating or binding policies of insurance; all communication with insureds concerning any term or condition of a policy of insurance; office management policies affecting insureds; processing claims; and transmitting funds between insureds, producers, premium finance companies and insurance companies.
"Insurance related debt" means any debt incurred by a producer arising from the selling, soliciting or negotiating of insurance.
"Interactive online course" means a computer online or internet course with an internal testing program that can monitor if the licensee responded with at least 70 percent correct answers without access to online study materials.
"Late renewal" means any renewal that is applied for subsequent to the expiration of a license and within 12 months after the expiration date.
"Legal expense insurance" means a contractual obligation to provide specific legal services, or to reimburse for specific legal expenses, in consideration of a specified payment for an interval of time, regardless of whether the payment is made by the beneficiaries individually or by a third person for them, but does not include the provision of, or reimbursement for, legal services incidental to other insurance coverages, or consultation or advice in connection with, or a part of referral services. Legal expenses insurance does not include a retainer agreement directly between the lawyer and the client, where no third party is at risk.
"Limited lines pet insurance producer" means an insurer designee, such as a managing general underwriter, managing general agent, or limited lines producer of pet insurance.
"Limited lines travel insurance producer" means an insurer designee, such as a managing general underwriter, managing general agent, or an individual or travel insurance business entity licensed as a limited lines producer of travel insurance.
"NAIC" means the National Association of Insurance Commissioners, its affiliates or subsidiaries, or any agency or committee thereof.
"National Producer Number" or "NPN" means a unique identifier assigned to each licensed producer by the National Association of Insurance Commissioners. A producer's NPN shall be the same in all states in which the producer is licensed.
"Nonresident" (of New Jersey) means a person for whom a state other than New Jersey has been designated the home state for the purposes of licensure.
"Pet insurance" means health insurance coverage including, but not limited to, coverage for injury, illness, and wellness, for pets such as birds, cats, dogs, and rabbits.
"Portable electronics" means electronic devices that are portable in nature, and accessories and services related to the use of the devices.
"Portable electronics insurance" means insurance providing coverage for the repair or replacement of portable electronics that may provide coverage for portable electronics against any one or more of the following causes of loss: loss; theft; inoperability due to mechanical failure; malfunction; damage; or other similar causes of loss. Portable electronics insurance shall not include:
1. A service contract or extended warranty providing coverage limited to the repair, replacement, or maintenance of property for the operational or structural failure of property due to a defect in materials, workmanship, accidental damage from handling, power surges, or normal wear and tear;
2. A policy of insurance covering a seller's or a manufacturer's obligations under a warranty; or
3. A homeowner's, renter's, private passenger automobile, commercial multi-peril, or similar policy of insurance.
"Portable electronics vendor" means a person engaged, directly or indirectly, in the business of portable electronic transactions.
"Resident" (of New Jersey) means a person who maintains his or her principal place of residence or principal place of insurance business in New Jersey where insurance business is transacted and for whom New Jersey has been designated the home state for the purpose of licensure.
"Self-storage personal property insurance" means direct primary insurance coverage for the personal property of a renter or lessee in a self-storage facility which insures the renter's or lessee's interest against loss or damage to the renter's or lessee's personal property, including debris removal and extra rental expense, while the personal property is located in the rented self-storage space.
"Self-study or self-directed course" means a continuing education course with study material in text, video, audio, or computerized format including interactive online courses, that is completed by successfully passing a test of the subject matter.
"Surrendered for cause" means the return of a license in lieu of or in connection with a revocation, suspension, other sanction or termination order.
"Ticket insurance" means the insurance coverages sold covering only the risk of travel sold by a travel agent or an agent of any railroad company, steamship company, airline company, car rental company or bus company.
"Travel insurance" means insurance coverage for personal risks incident to planned travel, including, but not limited to:
1. Interruption or cancellation of trip or event;
2. Loss of baggage or personal effects;
3. Damages to accommodations or rental vehicles; and
4. Sickness, accident, disability, or death occurring during travel.
Travel insurance does not include major medical plans, which provide comprehensive medical protection for travelers with trips lasting six months or longer, including, for example, those working overseas as an expatriate or military personnel being deployed.
"Travel retailer" means a business entity that offers and disseminates travel insurance on behalf and under the direction of a limited lines travel insurance producer.