Current through Register Vol. 56, No. 18, September 16, 2024
(a) No person
shall solicit, negotiate or sell an insurance contract in New Jersey unless he
or she is a licensed insurance producer.
(b) Selling, soliciting or negotiating an
insurance contract includes, but is not limited to, the following activities:
1. Discussing the effect of age, health or
other risk-related conditions of the prospective policyholder;
2. Urging or advising any prospective
purchaser to buy any particular policy or to insure with any particular
company;
3. Initiating sales over
the telephone or otherwise;
4.
Completing or signing applications for insurance if the person is other than
the applicant's authorized representative;
5. Collecting premiums in person at other
than a recorded place of business;
6. Making or proposing to make an insurance
contract;
7. Disseminating
information as to coverages in general or for any particular policy, except
that this shall not prohibit the dissemination of buyer's guides or
applications for coverage in response to requests from prospective
policyholders;
8. Disseminating
information as to rates in general or for any particular policy where the rate
cannot be secured by referring to a published or printed list of standard
rates;
9. Initiating an inquiry as
to the terms of existing coverage, except exclusively in the course of clerical
duties;
10. Discussing or
describing the coverages or terms of a proposed contract of insurance with a
prospective policyholder, including counseling as to which coverages to buy;
Example: If an insured or prospective insured requests advice
in any communication with an unlicensed employee, the response must be made by
a licensed producer.
11.
Recommending or independently initiating additions or deletions to an insured's
policy;
12. Signing binders,
endorsements and insurance policies;
13. Authorizing the issuance or delivery of
certificates of insurance, endorsements, binders or insurance policies or
insurance identification cards; and
14. Responding to a policyholder's request
for advice or counsel regarding policy provisions or coverage.
Example: In the course of requesting an application form or a
change to an existing policy, if a policyholder or prospective policyholder,
while speaking to an unlicensed person, requests an opinion about the terms of
the proposed insurance contract or the proposed change to the existing
contract, the response must be made by a licensed producer.
(c) No insurance producer shall
negotiate or solicit in New Jersey any insurance contract which has not first
been filed in New Jersey where such contract is required to be filed.
(d) Except as provided in (d)1 below, no
professional employer organization or its employees, principals and/or agents
shall engage in any activities listed in (b) above at any time, including while
negotiating and/or conducting business with any client company or prospective
client company, unless the activity is conducted or performed by a properly
licensed insurance producer.
1. Professional
employer organizations whose only insurance related activity when enrolling new
members is either providing information on the single insurance plan available
through the PEO, distributing literature on multiple insurance plans available
or performing only those functions described in N.J.S.A. 17:22A-30b(2) shall
not be deemed to be engaged in activity requiring licensure pursuant to (b)7, 8
or 10 above.
