New Jersey Administrative Code
Title 11 - INSURANCE
Chapter 2 - INSURANCE GROUP
Subchapter 40 - LIFE, HEALTH AND ANNUITY REINSURANCE AGREEMENTS
Section 11:2-40.3 - Reinsurance agreements

1. The reinsurance agreement or amendment shall be filed with the Commissioner no later than 30 days after its execution. In addition, no domestic insurer shall enter into any reinsurance agreement for which the Commissioner has been granted statutory prior approval authority involving a substantial transfer of risk without the prior approval of the Commissioner. For purposes of this subsection, a transfer of risk associated with a reinsurance agreement is considered to be substantial if a material number or percentage of policies are affected by the agreement, or if there is a material change in the reserve liabilities on the policies affected by the agreement. Such agreements shall be submitted to:

Office of Life and Health

Valuation Bureau

New Jersey Department of Banking and Insurance

PO Box 325

Trenton, NJ 08625-0325

2. This filing shall include a written opinion of an actuary representing the reinsurer which describes the ceding insurer's significant risks under the policies reinsured and specifies the extent (if any) to which these significant risks are transferred to the reinsurer.

3. Each reinsurance agreement filed with the Department shall be accompanied by documentation detailing the financial impact of the agreement. This documentation shall include information as to reserves transferred under the agreement and details as to payment and expense charges to and from each party to the agreement.

1. In the case of a letter of intent, the letter of intent shall stipulate that the reinsurance agreement is subject to approval by the Commissioner where the Commissioner has been granted statutory prior approval authority, and that no reserve credits shall be taken by the insurer until the Commissioner has approved the agreement.

2. In the case of a letter of intent, a reinsurance agreement or an amendment to a reinsurance agreement must be executed within a reasonable period of time, not exceeding 90 days from the execution date of the letter of intent, and before the filing of the first financial statement in which a credit is to be taken, in order for credit to be granted for the reinsurance ceded.

3. The reinsurance agreement or amendment shall stipulate that coverage thereunder shall terminate if it is not approved by the Commissioner where the Commissioner has been granted statutory prior approval authority and that, in any financial statement filed before the Commissioner has approved it, the ceding insurer shall take no reinsurance credit therefor, other than for any net cash refund available in the event that the agreement is not approved.

4. The reinsurance agreement shall stipulate that the written agreement, including any written amendments thereto, as filed with the Commissioner constitutes the entire agreement between the parties with respect to the risks being reinsured thereunder. The reinsurance agreement shall further stipulate that any change or modification of its terms shall be null and void unless made by written amendment signed by both parties, and that to the extent the original agreement required prior approval by the Commissioner, unless such change or modification is filed with the Commissioner for approval along with any necessary revisions to the actuarial opinion required by (a)2 above. There shall be no additional terms or conditions, either written or oral, and the parties to the reinsurance agreement shall not enter into any understandings or supplemental agreements with respect to the reinsurance, other than those set forth in the written agreement filed with the Commissioner.