Current through Register Vol. 56, No. 24, December 18, 2024
(a) The AIP shall be administered by a
Governing Committee of 18 members. No employee of a voluntary market automobile
insurer that is not actively writing automobile insurance or that has filed and
received approval of an application to withdraw from writing automobile
insurance in New Jersey shall be eligible to serve as a member of the Governing
Committee.
1. Eleven members shall be
salaried employees of an insurer that is a participant in AIP.
2. Four members shall be licensed
producers.
3. Two members shall be
public representatives who are knowledgeable about automobile insurance matters
but who are not employed by, or otherwise affiliated with, insurers, insurance
producers, or other entities of the insurance industry.
4. The Commissioner shall be an ex-officio,
non-voting member of the Governing Committee. The Commissioner may designate an
alternate.
(b) The
following organizations shall each nominate two members to represent insurer
participants of AIP:
1. Property Casualty
Insurers Association of America (PCI); and
2. The American Insurance
Association.
(c)
Insurers that are not members of the organizations in (b) above shall nominate
two members to represent insurer participants in accordance with a fair method
set forth in the AIP plan of operation.
(d) The following organizations shall each
nominate two members to represent producers:
1. Independent Insurance Agents of New
Jersey; and
2. Professional
Insurance Agents of New Jersey.
(e) Five of the 18 members shall be
representatives of one or more insurer participants in the organizations
referenced in (b) above or of a non-member insurer participant as referenced in
(c) above, to serve as at-large representatives. The five at-large members
shall be nominated in accordance with the method set forth in the AIP plan of
operation.
(f) All members shall be
appointed by the Commissioner. All members shall serve for two years or until a
successor is appointed. Each member may designate an alternate. In the event
the Commissioner fails to appoint a nominee, the organization shall nominate
another representative.
(g) All
meetings of the Governing Committee shall be conducted in accordance with this
subchapter and the AIP plan of operation.
(h) The Governing Committee shall have the
following powers and duties:
1. To develop
and submit for approval to the Commissioner:
i. A plan of operation;
ii. A rating system, including rates, rules,
and forms; and
iii. A plan for a
producer certification program, which may not exclude those producers with no
affiliation with an insurer.
2. To appoint, conditionally appoint, or
terminate:
i. An AIP manager, subject to
approval by the Commissioner, which shall be located in this State, to be
responsible for the conduct and administrative affairs of the AIP;
and
ii. Other employees,
professionals, and contractors required to administer the AIP.
3. To enter into and/or negotiate
contracts as are necessary or proper to carry out the provisions of this
subchapter;
4. To sue or be sued in
the name of the AIP, including taking any legal actions necessary or proper for
recovery of any assessments for, on behalf of, or against members. A judgment
against the AIP shall not create any direct liability against the Governing
Committee or its individual members, or the individual participating members of
the AIP. The AIP shall not be liable for claims made on or pursuant to
individual policies issued through the AIP;
5. To budget expenses, levy assessments, and
disburse funds;
6. To investigate
complaints and hear appeals from applicants, insureds, producers, LAD carriers,
CAIP servicing carriers, or insurers about any matter pertaining to the proper
administration of the AIP;
7. To
arrange for the independent audit of the AIP each year;
8. To furnish all insurers with:
i. An annual written operations
report;
ii. The approved annual
budget upon request;
iii. A copy of
the annual audit upon request;
iv.
A copy of the plan of operation and all amendments;
v. A copy of all policy forms, rates, rules,
and manuals upon request; and
vi. A
copy of the minutes from all meetings upon request;
9. To audit the records of any insurer
relating to the subject matter of AIP and establish such policies, records,
books of account, documents, and related material, which shall be maintained
for the proper administration of AIP;
10. To indemnify each member of the Governing
Committee and AIP employees for any and all claims, suits, costs of
investigations, cost of defense, and settlements or judgments against them on
account of an act or omission in the scope of the member's duties or employee's
employment. The AIP shall refuse to indemnify if it is determined that the act
or failure to act was due to actual fraud, willful misconduct, or actual
malice;
11. To appoint from among
its members or from qualified nonmembers appropriate legal, actuarial, claims,
and other committees as necessary to provide technical assistance in the
operation of the AIP, policy and other contract design, and any other function
within the authority of the AIP. The Commissioner may serve as an ex-officio,
non-voting member of any committee established pursuant to this section (except
an appeals subcommittee). The Commissioner may designate an
alternate;
12. To assume the assets
and liabilities of the CAIP on behalf of the member insurers;
13. To assume the rights and obligations of
the CAIP on behalf of the member insurers; and
14. To perform such other functions as may be
necessary and proper to administer AIP in accordance with this subchapter and
the approved AIP plan of operation.
