New Jersey Administrative Code
Title 11 - INSURANCE
Chapter 3 - AUTOMOBILE INSURANCE
Subchapter 1 - COMMERCIAL AUTOMOBILE INSURANCE PLAN
Section 11:3-1.5 - AIP plan of operation

Universal Citation: NJ Admin Code 11:3-1.5

Current through Register Vol. 56, No. 24, December 18, 2024

(a) The AIP plan of operation shall provide for the prompt and efficient provision of automobile insurance to qualified applicants. The AIP plan of operation shall provide for, among other matters:

1. The internal organization and proceedings of the Governing Committee;

2. Standards and procedures for:
i. The appointment, compensation, and termination of producers, the AIP manager, and other employees, professionals, and contractors required to administer the AIP;

ii. The appointment, compensation, and termination of LAD carriers (consistent with any requirements established by regulation by the Commissioner); and

iii. The standards and procedures for the number, selection, appointment, compensation, and termination of CAIP servicing carriers; and the distribution of assignments to those servicing carriers.

3. Performance standards for insurers, producers, LAD carriers, CAIP servicing carriers, the AIP manager, and other employees, professionals, and contractors required to administer the AIP;

4. A producer certification program, which may not exclude producers with no affiliation with a voluntary market insurer;

5. The extent of coverage to be offered by AIP to qualified applicants;

6. Premium rules, surcharges, and minimum premiums;

7. Procedures to apply for coverage;

8. Commissions to be paid producers;

9. Procedures for cancellation or the nonrenewal of policies;

10. Methods and means for the collection, investment, and disbursement of funds;

11. Procedures for handling CAIP premium charge-offs;

12. Procedures for the performance of preliminary premium audits on certain risks identified by the Governing Committee and approved by the Commissioner;

13. Procedures for a CAIP servicing carrier performance audit program;

14. Procedures for the provision of coverage to good faith applicants where a producer has violated plan rules;

15. Development of a basic CAIP servicing carrier contract, procedures for making modifications to that contract and the establishment of a specified term to that contract, which term shall not exceed five years;

16. Development and maintenance of a statistical plan and manuals incorporating that plan, which shall be subject to the prior approval by the Commissioner in the same manner as the AIP plan of operation; and

17. Such other provisions as are deemed necessary by the Governing Committee for the operation of the AIP.

(b) The Governing Committee shall submit to the Commissioner, for his or her review and approval, a proposed AIP plan of operation. The Governing Committee may propose an amendment to the AIP plan of operation at any time.

(c) The proposed plan and any amendments shall be submitted to the Commissioner for his or her review and approval. If approved, the Commissioner shall certify approval to the Governing Committee.

1. If the Commissioner disapproves all or any part of the AIP plan of operation or any amendment, he or she shall return the same to the Governing Committee with a statement that sets forth the reasons for his or her disapproval and may include other recommendations he or she may wish to make; and

2. The Commissioner may review the AIP plan of operation at any time and may propose amendments to the Governing Committee. If the Governing Committee does not adopt amendments acceptable to the Commissioner within 30 days, the Commissioner may certify amendments and their effective date to the Governing Committee. For good cause shown, the Commissioner may certify proposed amendments two days after copies of the proposal are provided to the Governing Committee.

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