Current through Register Vol. 56, No. 6, March
18, 2024
(a) A
producer's application to be a qualified producer under the voluntary rating
tier shall be disapproved if, based on the PAIP's review as set forth in
11:3-46.8:
1. The producer failed to file a completed
application with the PAIP as provided in
11:3-46.7(c);
2. The producer is determined not to meet the
eligibility criteria set forth in
11:3-46.7(b)1
through 5;
3. The producer
knowingly withheld material information on the application or any accompanying
document or intentionally made or caused to be made any false, deceptive or
fraudulent statement during the application process, or otherwise qualified or
attempted to qualify by fraud or material misrepresentations; or
4. The producer has failed to comply with
insurance laws or regulations and/or the producer standards established by the
PAIP in such a manner or with such frequency as to demonstrate a lack of
competency, efficiency and effectiveness in the solicitation, negotiation and
servicing of insurance business. In making its determination under this
paragraph, the PAIP shall consider the nature of any violation and how recently
it occurred.
(b) An
otherwise eligible producer whose application has been disapproved may reapply,
except where such disapproval is for cause. For the purpose of this provision,
the term "for cause" shall mean any willful and/or repeated violation of
insurance laws or rules, or PAIP performance standards, or any conduct that
demonstrates unworthiness, lack of integrity, bad faith, dishonesty, financial
irresponsibility or incompetency to transact business as an insurance
producer.
(c) When the PAIP
disapproves an application for a qualified producer, the disapproval notice
shall:
1. Include a written statement
specifying the reasons for the rejection; and
2. Inform the producer of his or her ability
to request a review by the Commissioner, within 10 days after receipt of the
disapproval by the PAIP.
i. A request for
review by the Commissioner shall be in writing and made within 10 days of
receipt of the disapproval and shall be accompanied by all supporting
documentation, if any, disputing with specificity, the reasons for disapproval.
A copy of the request shall be filed concurrently with the PAIP. A response to
this request may be made by the PAIP within 10 days after receipt by the PAIP;
and
ii. The Commissioner shall
issue a written decision with reasons upholding or reversing the decision of
the PAIP within 45 days from receipt of the last written request or response,
whichever is later.
(d) Any review by the Commissioner pursuant
to this rule shall be conducted based on a review of the record established by
the PAIP.
