New Jersey Administrative Code
Title 11 - INSURANCE
Chapter 17A - INSURANCE PRODUCER STANDARDS OF CONDUCT; MARKETING
Subchapter 1 - ACTIVITIES FOR WHICH A PERSON MUST BE LICENSED AS AN INSURANCE PRODUCER
Section 11:17A-1.7 - Personal private passenger automobile insurance solicitation
Universal Citation: NJ Admin Code 11:17A-1.7
Current through Register Vol. 56, No. 18, September 16, 2024
(a) An insurance agent, or an insurance broker who has a brokerage relationship with an insurer, when soliciting personal private passenger automobile insurance, shall:
1. Upon request, submit an application for
automobile insurance to the insurer selected by the applicant.
i. Where a producer who, pursuant to his or
her agreement with an insurer, does not have authority to bind coverage
immediately, receives a completed written application, the producer shall
promptly transmit the application to the insurer. Nothing in this section shall
be construed to permit an insurer to rescind any binding authority previously
granted to its producers.
ii.
Producers that transmit applications to insurers for underwriting review shall
retain proof of such transmissions in order to memorialize the date upon which
transmission occurred. Such proof may be in the form of:
(1) An official receipt of mailing which
includes the applicant's name thereon;
(2) A copy of a facsimile transmission which
contains the applicant's name and the date of transmission; or
(3) Any other manner from which proof and
date of mailing can be verified;
2. Within 10 working days after receiving a
declination (see N.J.A.C. 11:3-33) from an insurer to which a written
application has been submitted, so advise the applicant in writing, unless the
written declination was sent by the insurer to the applicant or the
insured;
3. Where no written
application has been made prior to declination, the agent or broker shall, if
so requested by the applicant within 90 days from the date of denial, provide
the applicant with a written explanation of the declination within 10 working
days of the request. Such communication shall, when applicable, include the
reasons why the coverage offered is with less favorable terms or conditions
than those requested; and
4. Not
bind coverage for automobile physical damage perils prior to inspection of the
automobile by the insurer when the insurer requires such inspection pursuant to
the provisions of N.J.A.C. 11:3-36.
(b) For the purpose of this section, the Commissioner may impose a civil penalty in an amount of up to $ 2,000 for the first violation and up to $ 5,000 for the second and each subsequent violation and any other penalty provided by law.
Disclaimer: These regulations may not be the most recent version. New Jersey may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.
