Current through Register Vol. 56, No. 18, September 16, 2024
(a) A stock
company shall deposit the whole amount of capital stock set forth in the
certificate of incorporation and the required minimum surplus in cash, and a
mutual company shall deposit the amount of cash equal to the required minimum
net assets, for all lines of insurance such stock or mutual company is
authorized to write pursuant to its certificate of incorporation. A reciprocal
insurance exchange shall deposit the required minimum capital and surplus
requirements pursuant to
17:50-5.
(b) All applicants shall also submit a
security deposit pursuant to
17:20-1,
17:46B-7 and
17:50-6, as applicable, registered
in the following format:
"Commissioner of Banking and Insurance of the State of New
Jersey, as trustee, in trust for the benefit and security of the policyholders
of (Name of company F.I.D. No.)."
(c) After the required capital and surplus
amounts have been deposited and credited in cash to the applicant and a
security deposit has been filed with the Commissioner pursuant to (a) and (b)
above, the applicant shall notify the Commissioner in writing that such
deposits have taken place. Within 30 days after such notification the
Department will contact the applicant and arrange for an organization
examination to be conducted on the site of the applicant's home
office.
(d) The applicant shall
make available to the Department for review and copy as necessary to conduct an
organization exam the following, without limitation:
1. The Certificate of
Incorporation;
2. Certified copies
of the incorporators', stockholders', company's and attorney in fact's
organization resolutions, as applicable;
3. The names, home addresses (including zip
codes) and occupations of directors elected;
4. The names and titles of the applicant's
officers;
5. The name and address
of the bank in which the securities are deposited and the person to contact to
verify securities owned;
6. The
name of the applicant's registered agent and the resolution authorizing him to
accept service of process;
7. A
complete ownership chart depicting a diagram of ultimate control in the format
of Schedule Y--Organization Chart contained in the Annual Statement;
i. For the purposes of the ownership chart,
control exists if any person, directly or indirectly, owns, controls, holds
with the power to vote, or holds proxies representing five percent or more of
the voting securities of any other person;
ii. In the case of reciprocal insurance
exchanges, the ownership chart shall show the interrelationship between the
parent and all affiliates of the attorney in fact engaged in the business of
insurance and shall also show the relationship of the attorney in fact to the
ultimate parent and illustrate all intermediate parent(s) having control of the
attorney in fact as the term control is defined in (d)7i above;
8. An audited financial statement
of the intermediate and ultimate parent(s) or attorney in fact, as applicable,
prepared by a certified public accountant;
i.
For the purposes of the audited financial statement, intermediate and ultimate
parent means any person, directly or indirectly, who owns, controls, holds with
power to vote, or holds proxies representing 10 percent or more of the voting
securities of any other person;
ii.
In the case of an attorney in fact, the Commissioner may accept a report other
than an audited financial statement if, in his or her opinion, the structure of
the attorney in fact is such that an audited financial statement is not
prepared in the normal course of business;
9. A pro forma balance sheet of the company
certified by an officer of the applicant;
10. A certified copy of the by-laws of the
proposed insurer or reciprocal insurance exchange, as applicable;
11. A copy of the applicant's stock
certificate if applicable;
12.
Complete copies of the biographical sketches of the applicant's incorporators,
directors and officers;
13. Any
financing agreements with a bank or other financial institution;
14. Management, operating or expense sharing
agreements;
15. An original
affidavit of the officers and directors completed and signed in the format of
Appendix C appended to this subchapter, which is hereby incorporated by
reference as part of these rules;
16. Reinsurance agreements or proposed
reinsurance programs;
17. A
detailed written outline from the applicant explaining its plan of operations
containing the information specified in
11:1-28.5(b)1,
and a summary of the applicant's initial rating system which shall include:
i. Rates by lines of business;
ii. Statistical agent;
iii. Independent filings; and
iv. The rating bureau (if any);
18. A five year projection
certified by a qualified actuary containing the information required by
11:1-28.5(b)3;
and
19. Documents pertaining to
authority to write workers' compensation insurance (if applicable).
