Current through Register Vol. 56, No. 24, December 18, 2024
(a) Any insurer
seeking to withdraw shall file the informational filing and otherwise comply
with the requirements set forth in
N.J.S.A. 17:17-10 or
17:33B-30, as
applicable.
(b) Any insurer seeking
to withdraw shall, as part of the informational filing required pursuant to
N.J.S.A. 17:17-10 or
17:33B-30, as applicable, provide
the information listed in (c) below. Failure to provide all of the information
shall result in a determination that the informational filing is non-compliant,
and it shall be disapproved by the Commissioner. The Department shall notify a
filer within 10 days of the Department's receipt of the informational filing if
it is non-compliant. The insurer may resubmit the informational filing when the
deficiencies have been corrected, which shall be considered a new
submission.
(c) An informational
filing shall contain the following:
1. The
reason for the insurer's withdrawal;
2. Copies of the following notifications:
i. The Policyholder Notice of Intent to
Withdraw required pursuant to N.J.S.A. 17:17-10b(1) and
17:33B-30a(1);
ii. The one-year
non-renewal notice required pursuant to N.J.S.A. 17:17-10b(3) and
17:33B-30a(3);
iii. The producer
notice by which the insurer advises its producers of its intent to withdraw
(Producer Notice), where applicable; and
iv. The non-renewal notice to be provided to
insureds within the timeframes set forth in N.J.A.C. 11:3-8, 11:1-20 or
N.J.A.C. 11:1-5.2, as applicable;
3. The lines of insurance and/or
program(s) to be withdrawn;
4. The
number of exposures and number of policies to be non-renewed;
5. The insurer's market share by line and, in
addition, for private passenger automobile insurance, exposures by territory,
and for homeowners' insurance, exposures as reported pursuant to the reports
required by
N.J.A.C.
11:2-42.10 and, separately, any additional
zip codes that fall within the insurer's definition of "coastal area";
6. A list of the insurer's
producers and their current business addresses; and
7. The proposed duration of the non-renewal
of the company's book of business.
(d) The insurer shall send a notice to its
policyholders of the proposed withdrawal no later than 30 days following the
submission of an informational filing to the Commissioner that has not been
disapproved as non-compliant.
(e)
Non-renewals shall not commence prior to one calendar year and 90 days
following the submission of the compliant informational filing, unless a waiver
is requested and approved by the Commissioner pursuant to
N.J.A.C. 11:2-29.4.
(f) The insurer shall send to every
policyholder:
1. A notice of non-renewal no
later than one calendar year preceding the date of non-renewal, unless a waiver
is requested and approved by the Commissioner pursuant to N.J.A.C. 11:2-29.4;
and
2. A final notice of
non-renewal in accordance with the time limit established pursuant to N.J.A.C.
11:3-8, 11:1-20 and 11:1-5.2, as applicable.
(g) Non-renewals shall take place in a manner
so as to be applicable to all insureds on an equitable basis with respect to
risk classification and territorial or other form of rating factor, and shall
be effectuated at a uniform rate over a period not exceeding three calendar
years, commencing with the date established in (e) above, unless the three-year
timeframe is otherwise waived; provided, however, that if more than one company
files for withdrawal for the same line of business and the companies, in the
aggregate, write more than 25 percent of the market share for that line of
business, the Commissioner may extend the period of withdrawal to five
years.
(h) The minimum requirements
for the Notice of Intent to Withdraw and non-renewal notices referenced in this
section are set forth below. A sample of the notices shall be posted on the
Department's web site at www.dobi.nj.gov,
as may be modified from time to time.
1. The
Notice of Intent to Withdraw shall:
i. Include
a prominent heading, in boldface 14-point type or other conspicuous manner
which draws the reader's attention;
ii. State that the purpose of the
notification is to advise the insured that the insurer intends to withdraw from
the applicable line(s) and/or program(s) of insurance in New Jersey;
iii. State that, as required by law, the
insurer has submitted an informational filing withdrawal to the New Jersey
Department of Banking and Insurance advising of its intent to
withdraw;
iv. Explain the terms of
the withdrawal, including the date of the proposed commencement of the
non-renewal of policies and the proposed duration of the company's non-renewal
of policies;
v. If applicable, such
as in a case where a waiver has not been requested or approved, advise the
insured that the company will send a notice of non-renewal no later than one
calendar year preceding the date of non-renewal; and
vi. Advise the insured that a notice of
non-renewal will be sent in accordance with the time limits established by law
for that line of coverage.
2. The one-year non-renewal notice and final
notices of non-renewal shall:
i. Advise the
insured that the non-renewal is based on an informational filing withdrawal
submitted by the insurer to the New Jersey Department of Banking and
Insurance;
ii. Explain the general
terms of the withdrawal and, where the informational filing provides for a
replacement carrier(s), indicate that replacement coverage is being made
available, and through whom such coverage is available;
iii. Advise that the non-renewal is based on
a business decision of the insurer and is not intended as a negative reflection
on the policyholder's insurability;
iv. Where applicable, include the name,
address and telephone number of the appropriate residual market mechanism where
the policyholder may seek coverage in the event that the insured is not
eligible for or coverage is otherwise not available in the voluntary
market;
v. Include the following
statement: "For information that will assist you in shopping for coverage, you
may contact your insurance agent, as well as the New Jersey Department of
Banking and Insurance at 1-800-446-SHOP (7467) or visit the Department on the
web at
www.dobi.nj.gov"; and.
vi. If the insurer is sending a one-year
non-renewal notice, state that a final notice of non-renewal will be sent in
accordance with applicable timeframes for that line (for example, not less than
X days prior to the expiration of the policy);
3. If a replacement carrier is utilized, in
addition to the requirements set forth in (h)2 above, where an offer of
replacement coverage is sent separately, the final non-renewal notice shall
either include or be accompanied by further information about the replacement
carrier and the process to be followed for securing coverage with the new
carrier.
(i) The
one-year non-renewal notice, unless waived pursuant to N.J.A.C. 11:2-29.4, and
the final non-renewal notice shall be sent within the timeframes for such
notices as provided by
N.J.S.A. 17:17-10 or
17:33B-30, as applicable, and
N.J.A.C. 11:3-8, for private passenger automobile insurance, and N.J.A.C.
11:1-20 or 5.2, as applicable, for all other lines. The notice(s) shall contain
the information required for such notices set forth in applicable law. Except
as set forth in this section, the notice(s) shall not include the statements
otherwise required pursuant to
N.J.A.C. 11:1-20.2(h) and
N.J.A.C. 11:3-8.5(b)1, as applicable, related to filing complaints with the
Department concerning the non-renewal.
(j) Insurers may include additional
information in the notice to policyholders or provide additional notices to
policyholders containing such information that the insurer deems appropriate,
provided such notices or information are filed as set forth above in this
section, and the information or notices are not inconsistent with the
requirements of this subchapter.
