New Jersey Administrative Code
Title 11 - INSURANCE
Chapter 2 - INSURANCE GROUP
Subchapter 36 - RISK RETENTION GROUPS AND PURCHASING GROUPS
Section 11:2-36.6 - Surplus lines coverage
Current through Register Vol. 56, No. 6, March 18, 2024
(a) Where a purchasing group obtains a group policy from an insurer that is eligible as a surplus lines insurer in this State pursuant to N.J.S.A. 17:22-6.4 0 et seq., and the policy covers members in this State, it shall be deemed that a diligent effort has been made to procure such coverage from among insurers authorized to transact business in this State, provided the producer obtains declination of such coverage based on the group policy issued to the purchasing group. Such declinations may be for the benefit of all members of the purchasing group located in this State that may become members of the purchasing group under the group policy.
(b) For purposes of determining whether coverage obtained by a purchasing group constitutes a "large risk" pursuant to 11:1-34.6(a)16, the amount of premium to be considered shall include premiums paid for the particular coverage for all members under the group policy, rather than the premium for coverage of any individual member of the purchasing group.
