New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 2 - INSURANCE GROUP › Subchapter 29 - ORDERLY WITHDRAWAL OF INSURANCE BUSINESS › Section 11:2-29.2 - 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:
"Affiliate" means an insurer that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the insurer that initiates a withdrawal, as defined in 17:27A-1.
"Annual statement" means the form of statement that is described in 17:23-1 or 17:46B-55, as applicable.
"Applicant" means the insurer seeking approval to withdraw from the business of insurance in this State.
"Assumption agreement" means a contract between insurers whereby one insurer transfers all or substantially all its rights, duties and obligations arising from certain policies to another insurer.
"Authority" means the power granted by the Commissioner which enables an insurer to transact the business of insurance.
"Automobile" is as defined in 39:6A-2.
"Business of insurance" or "insurance" means any kind, line, subline, or a portion thereof authorized by Chapters 17, 32, 46B or 50 of Title 17 of the Revised Statutes.
"Commencement date" of withdrawal means the effective date of the first action constituting a withdrawal from the business of insurance in this State pursuant to the approved plan of orderly withdrawal.
"Commissioner" means the Commissioner of the New Jersey Department of Banking and Insurance.
"Control" is as defined in 17:27A-1.
"Department" means the New Jersey Department of Banking and Insurance.
"Effective date" of withdrawal means the date at which the applicant has complied with any and all conditions contained in the approved plan of orderly withdrawal.
"Hazardous financial condition" is as defined and determined pursuant to N.J.A.C. 11:2-27.
"Homeowners insurance" is as defined at 11:2-42.2.
"Insurance holding company system" consists of two or more affiliated persons, one or more of which is an insurer as defined in 17:27A-1.
"Insurance producer" or "producer" means the definition of "insurance producer" as set forth in 17:22A-28.
"Insurer" means an insurer, a reciprocal insurance exchange, and any insurance affiliates thereof, authorized or admitted pursuant to Chapters 17, 32, 46B or 50 of Title 17 of the Revised Statutes to transact in this State the business of insurance as defined herein.
"Multi-state account" means a single contract or policy of commercial lines insurance as defined in N.J.S.A. 17:29AA-3 which covers risks or locations in both New Jersey and at least one other state; any group policy in which covered members of the group reside in New Jersey and at least one other state; and any plan approved for the mass marketing of insurance pursuant to N.J.A.C. 11:2-12 in which policyholders of the plan reside in New Jersey and at least one other state.
"Plan" means a plan of orderly withdrawal from the business of insurance in New Jersey submitted by an insurer pursuant to this subchapter.
"Portfolio reinsurance agreement" means a contract between insurers whereby one insurer transfers its entire liability for in-force policies or outstanding losses, or both, to another insurer regarding a described segment of insurance business.
"Rating system" means every schedule, class, classification, rule, guide, standard, manual, table or rating plan by whatever name described containing the rates (or loss costs), rules and forms used by any insurer or by any advisory organization in determining or ascertaining rates or loss costs.
"Reinsurance agreement" means a contract between insurers whereby one insurer agrees to insure part or all of an insurance risk of an originating, or ceding, insurer.
"Residual market mechanism" means any program authorized or created by the New Jersey State Legislature which is designed to provide an insurance market for insureds who are unable to obtain insurance in the voluntary market.
"State" means the State of New Jersey.
"Withdraw" or "withdrawal" means the nonrenewal, cancellation, or termination of policies, or surrender of authority to transact the business of insurance in this State, or any insurer action that is equivalent to a withdrawal from the business of insurance in this State which may include, but is not limited to, the elimination of a rating system, termination of agency contracts, reduction in agency commissions, restrictions on agency solicitation or binding authority, insurer refusal of applications or declaration of a dividend to an affiliate, when such action or actions exceed those occurring in the ordinary course of business. Whether the above activities are equivalent to a withdrawal shall be determined by the Commissioner on a case-by-case basis.
"Withdraw" or "withdrawal" also means the transfer to another insurer of insurance business pursuant to an assumption agreement as defined herein or a portfolio reinsurance agreement as defined herein.