New Jersey Administrative Code
Title 11 - INSURANCE
Chapter 3 - AUTOMOBILE INSURANCE
Subchapter 20 - REPORTING FINANCIAL DISCLOSURE AND EXCESS PROFITS
Section 11:3-20.8 - Refund or credit of an excess profit
Current through Register Vol. 56, No. 6, March 18, 2024
(a) If the Commissioner determines that an insurer is required to refund excess profits, the Commissioner shall issue written notice to the insurer of his or her determination. The notice shall contain a written explanation of the basis on which such a determination was made and shall advise the insurer that it may request a reevaluation of the determination as set forth at (b) below.
(b) An insurer may request a reevaluation of the determination that it is required to refund an excess profit by submitting a written request to the Department within 30 days of the receipt of the notice in (a) above.
(c) The insurer shall submit to the Commissioner a fair, practicable and nondiscriminatory plan to refund or credit to policyholders the excess profit or a plan to reinvest into New Jersey within 30 days after receipt of the written notice referenced in (a) above or, if an insurer requests a reevaluation, within 30 days after notification, in accordance with (b)3 above, is made to the insurer that it is required to refund an excess profit subsequent to the reevaluation having been performed.
(d) Upon approval of the insurer's refund or credit plan, the Commissioner shall issue an order requiring the insurer to distribute all excess profit according to the approved plan.
(e) Within 15 days after the excess profit has been refunded or credited to policyholders, the insurer's corporate official shall certify that such refund or credit has occurred.
(f) Any refund or credit shall be deemed a policyholder dividend applicable to the year in which it is incurred for reporting in subsequent excess profit reports.