Current through Register Vol. 56, No. 6, March
18, 2024
(a) No person
shall act as a reinsurance intermediary in this State unless licensed as a
producer in this State, with authority for the kind and kinds of business to be
transacted. The Commissioner may authorize a person to act as a reinsurance
intermediary if that person has complied with the requirements of this section
and 11:17-7.4.
1. An authorization issued to a firm or
association shall authorize all members of the firm or association and any
designated employee to act as reinsurance intermediaries under the
authorization, and all those persons shall be named in the application and any
supplements thereto.
2. An
authorization issued to a corporation shall authorize all of the officers, and
any designated employee and directors thereof, to act as reinsurance
intermediaries on behalf of the corporation, and all those persons shall be
named in the application and any supplements thereto.
(b) Any firm, association or corporation
licensed as a producer in this State, wishing to be authorized as a reinsurance
intermediary shall submit the following:
1. A
properly completed application (see Appendix Form C, incorporated herein by
reference) requesting authorization to act as a reinsurance intermediary. The
application shall be signed, dated and certified to be correct by a licensed
officer of the corporation;
i. Applications
submitted by a firm or association shall provide in the application the names
and New Jersey insurance producer reference numbers of all members of the
firm/association and any designated employees, who are licensed as producers to
act as reinsurance intermediaries on behalf of the corporation;
ii. Applications submitted by corporations
shall provide in the application the names and New Jersey insurance producer
reference numbers of all of the officers and any designated employees and
directors thereof, who are licensed as producers to act as reinsurance
intermediaries on behalf of the corporation;
2. If the applicant seeking authorization as
a reinsurance intermediary is a nonresident, the application shall provide that
the applicant, as a condition precedent to receiving or holding such
authorization, designate the Commissioner as agent for service of process. The
applicant shall also:
i. Provide the
Commissioner with the name and address of a resident of this State upon whom
notices or orders of the Commissioner or process affecting such nonresident
reinsurance intermediaries may be served; and
ii. Within 30 days notify the Commissioner in
writing of every change in its designated agent for service of process, and
such change shall not become effective until acknowledged by the
Commissioner;
3. Any
documents or statements required to explain responses to questions concerning
the applicant's character, fitness or financial responsibility; and
4. A valid check or money order for $ 20.00
which shall accompany the application.
(c) A reinsurance intermediary-manager shall
acquire and maintain a surety bond for the protection of the reinsurer
contracting with the reinsurance intermediary-manager. The bond shall be in the
amount of $ 100,000 or 25 percent up to $ 10,000,000 of the gross amount of
direct premium written by the reinsurer for the previous calendar year that is
attributable to the reinsurance intermediary-manager, whichever is greater.
1. The bond amount shall be adjusted
accordingly on or before April 1st of each year.
2. The bond shall be executed by an admitted
company authorized to transact fidelity and surety business in New Jersey. The
bond shall not be written by the insurer or an affiliate of the reinsurer
contracting with the reinsurance intermediary.
3. Proof of an executed bond shall be
submitted by the insurance company contracting with the reinsurance
intermediary and manager.
(d) All reinsurance intermediary-managers
shall acquire and maintain an errors and omissions insurance policy. The policy
coverage limits shall be set at $ 100,000 or 25 percent up to $ 10,000,000 of
the direct premium written by a reinsurer for the previous calendar year that
is attributable to the reinsurance intermediary-manager, whichever is greater.
1. The policy coverage limits shall be
adjusted accordingly on or before April 1st of each year.
2. The errors and omissions policy shall be
issued by an insurer admitted to do business in New Jersey or an eligible
surplus lines insurer.
3. Proof of
an errors and omissions insurance policy shall be submitted to the insurance
company contracting with the reinsurance intermediary-manager.
