New Jersey Administrative Code
Title 11 - INSURANCE
Chapter 4 - ACTUARIAL SERVICES
Subchapter 7 - PROCEDURE FOR THE REGULATION OF CONSENT TO HIGHER RATE FILINGS
Section 11:4-7.5 - Approval of applications
Current through Register Vol. 56, No. 6, March 18, 2024
(a) The Commissioner shall approve applications complying with the requirements contained in 11:4-7.1 through 7.4 on a current basis, and shall provide notice of such approval to the submitting carrier.
(b) The Commissioner shall disapprove applications that fail to comply with any of the requirements in 11:4-7.3 and 7.4, or do not meet the requirement of being reasonable and adequate and not unfairly discriminatory, and shall provide notice of such disapproval to the company, the producer of record and the insured.
(c) The company and the insured shall have the same legal remedies as are available in the case of disapproval of any rate filing.
(d) If a filing is disapproved, the policy with respect to which the filing had been made may be cancelled by the company on the basis of the premium that is applicable under the rating system approved for the company (normal premium), but such cancellations must be on a pro rata basis. However, if a disapproval is sustained upon an appeal by the insured, cancellation shall be pro rata on the basis of the "premium payable" as defined above.
(e) If the company wishes to continue the policy in force after the "consent to rate" filing has been disapproved, it may do so by charging the normal premium as of the policy's inception date.
(f) Nothing in this subchapter shall prevent a company from filing a rate that produces a premium lower than that produced by the approved rating system, including the rating systems applicable under any residual market mechanism created by statute.
