Current through Register Vol. 56, No. 6, March
18, 2024
(a) Each
special permit holder shall have and maintain segregated assets at least equal
to the sum of:
1. The reserves on its
outstanding agreements calculated in accordance with the provisions of N.J.S.A.
17B:19; and
2. A surplus equal to $
100,000 or to ten per cent of the amount in paragraph 1 above, whichever is
greater.
(b) In
determining the reserves of any special permit holder, a deduction shall be
made for all or any portion of an annuity risk which is lawfully reinsured by
an authorized insurer, but such reinsurance shall not relieve a special permit
holder from the requirement that the surplus shall be at least $
100,000.
(c) The Commissioner may
consider that each corporation or association in a group of two or more
corporations and/or associations which has met all other requirements of this
section has met the requirements as to the amount of segregated annuity fund
assets, provided:
1. The segregated assets of
each such organization shall equal at least 110 per cent of the sum of the
reserves on its outstanding agreements calculated in accordance with the
provisions of N.J.S.A. 17B:19;
2.
The combined segregated assets of all such organizations, when considered as a
unit, meet the requirements of this section concerning the amount of segregated
assets;
3. The organizations enter
into an agreement by which each organization pledges the full amount of its
segregated annuity assets as liable for the payment of each annuity and all
annuities issued under the agreement by each organization and all organizations
in the group;
4. Such agreement
shall be determined by the Commissioner to protect the public at least to the
same extent as though all annuities were issued by a single
organization;
5. No change may be
made in such agreement and no organization may be added to or released from
such agreement without the prior approval of the Commissioner; and
6. The Commissioner may require that, in
addition to any other reports that he shall normally require from permit
holders, the group of organizations file annually a consolidated report in
order to demonstrate that the requirements of this section are met on a
consolidated basis.
(d)
Each member organization within the group will be subject to all requirements
of the law and of this subchapter other than the requirement of $ 100,000
minimum surplus; this minimum must be satisfied by the group,
however.
