New Jersey Administrative Code
Title 11 - INSURANCE
Chapter 1 - ADMINISTRATION
Subchapter 20 - RENEWAL, CANCELLATION AND NONRENEWAL OF COMMERCIAL AND HOMEOWNERS INSURANCE POLICIES
Section 11:1-20.7 - Cancellation or nonrenewal based on loss of or substantial changes in applicable reinsurance

Universal Citation: NJ Admin Code 11:1-20.7

Current through Register Vol. 56, No. 18, September 16, 2024

(a) Every cancellation or nonrenewal based on loss of or substantial changes in applicable reinsurance shall be supported by the following documentation:

1. All information set forth at 11:1-22.2(b)1;

2. Copy of termination notice or other notice reflecting substantial changes in applicable reinsurance;

3. Copy of order issued by insurance department or court of competent jurisdiction, where applicable; and

4. Name, address and telephone number of each reinsurer contacted by the insurer in its effort to obtain replacement coverage, name and title of each company representative contacted and the outcome.

(b) Whenever an insurer proposes to cancel or nonrenew, on an individual basis, a policy which is subject to the provisions of this subchapter due to loss of or substantial changes in applicable reinsurance, the insurer shall furnish the Department with written notice of the termination. The notice shall include the information set forth at 11:1-22.2(b) and (a)2, 3 and 4 above.

(c) In lieu of cancellation or nonrenewal, insurers shall offer to continue the policyholder's coverage at limits which reflect at least the insurer's net retention as identified pursuant to (a) above. In no event shall the insurer's offer to continue coverage at reduced limits relieve it from requirements that are otherwise applicable to cancellations and nonrenewals under N.J.A.C. 11:1-22 or this subchapter.

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