New Jersey Administrative Code
Title 11 - INSURANCE
Chapter 17D - INSURANCE PRODUCER STANDARDS OF CONDUCT: ADMINISTRATIVE PROCEDURES AND PENALTIES
Subchapter 2 - ADMINISTRATIVE PROCEDURES AND PENALTIES
Section 11:17D-2.1 - Procedures for the imposition of administrative penalties
Universal Citation: NJ Admin Code 11:17D-2.1
Current through Register Vol. 56, No. 6, March 18, 2024
(a) Rules concerning the initiation of action against an alleged violator follow:
1. Before an administrative penalty is
imposed, the Department shall direct a notice by certified mail or personal
delivery to the last known business or mailing address of the alleged violator.
The notice shall include:
i. A reference to
the statute, rule and/or administrative order alleged to be violated;
ii. A concise statement of the facts alleged
to constitute the violation;
iii. A
statement of the administrative penalty or penalties sought to be imposed;
and
iv. A statement advising the
alleged violator of the right to a hearing and the procedure for requesting a
hearing.
2. The notice
may describe more than one violation, or more than one specific penalty for
each violation. A single form of notice may be used to notify several alleged
violators, so long as all are named and served with a copy of the notice in
conformity with the provisions of (a)3 below.
3. The notice shall be served by personal
delivery, or by certified mail to the alleged violator's last known business or
mailing address, according to the files maintained by the Department. Service
in this manner shall be considered lawful service on the alleged
violator.
(b) Rules concerning the failure of an alleged violator to respond to a notice follow:
1. The alleged violator's failure to respond,
as required by the notice, within the time provided in the notice, shall be
deemed to be an admission to all of the allegations, charges and conclusions
contained in the notice, and no further proceeding shall be required prior to
the execution of a final order that imposes the administrative penalty or
penalties described in the notice.
2. If no response is received within the time
provided in any notice to suspend or revoke a license or authority to conduct
any activity regulated by Title 17 and 17B, the Department shall prepare a
final order suspending or revoking the license or authority to conduct such
activity, and mail a copy of the order to the violator at his or her last known
business address on file with the Department.
3. If the notice provides for the payment of
any fine, compels any restitution or reimbursement to the Department for
investigative or prosecution cost, and payment or proof of payment has not been
received, the Department may proceed to suspend or revoke the license or
authority of the violator as provided in
11:17D-2.1.
(c) Rules concerning an alleged violator's consent to an administrative penalty follow:
1. In order for matters set forth in a notice
to be deemed concluded by means of a consent by the alleged violator to the
imposition of the administrative penalty described in the notice, the
Department may require any or all of the following:
i. The return to the Department for
cancellation of any license or other written evidence of the authority to
conduct the business of insurance in this State;
ii. The payment of a monetary
penalty;
iii. The reimbursement to
the Department of the costs of investigation and prosecution;
iv. The restitution of moneys owed any
person; and
v. The execution of an
administrative order which may include admissions of material facts,
conclusions of law, and such other terms and conditions as the Commissioner, or
his or her authorized designee may deem to be necessary and appropriate under
the circumstances.
(d) Rules concerning a request by an alleged violator for a hearing follow:
1. An alleged
violator shall have 20 calendar days from service of the notice of intent to
impose an administrative penalty within which to deliver a written request for
a hearing to: Manager of Enforcement, New Jersey Department of Banking and
Insurance, PO Box 329, Trenton, New Jersey 08625-0329 or faxed to the
Department at (609) 292-5337.
2. A
request for a hearing shall include:
i. The
name, address and daytime telephone number of the alleged violator;
ii. A copy of the notice;
iii. A statement requesting a
hearing;
iv. A specific admission,
denial or explanation of each fact alleged in the notice, or a statement that
the person is without knowledge thereof; and
v. A concise statement of the facts or
principles of law asserted to constitute any factual or legal
defense.
3. If a hearing
request fails to include a specific admission, denial or explanation of each
fact alleged, or a statement that the person is without knowledge thereof, the
facts alleged in the notice shall be deemed to have been admitted.
4. If a hearing request lacks any of the
elements in (d)2 above, the Department may deny the request or by certified
mail advise the person of the deficiencies and provide an additional 10
calendar days from the issuance of the deficiency letter to correct them. If no
reply correcting the deficiencies is received by the Department within 10
calendar days, the Department may issue a final order without granting a
hearing.
5. Upon receipt of a
properly completed request for a hearing, the Manager of Enforcement, or such
other Department personnel as may be designated by the Commissioner, shall
examine the request and may conduct or direct such further proceedings as may
be appropriate, including, but not limited to, an interview with the alleged
violator.
6. Not later than 60 days
after the receipt of a properly completed request for a hearing, the Manager of
Enforcement, or such other Department personnel as may be designated by the
Commissioner, shall advise the alleged violator of the manner of disposition,
which may be as follows:
i. Terminated with
or without prejudice;
ii. Resolved
by consent order, which may provide for a lesser or different administrative
penalty; or
iii. A finding that the
matter constitutes a contested case, pursuant to the Administrative Procedure
Act, 52:14B-1 et seq. In such a case,
the Department shall transmit the matter to the Office of Administrative Law
for a hearing consistent with the Uniform Administrative Practice Rules,
N.J.A.C. 1:1.
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.
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