N.J. Admin. Code § 11:17C-2.2

Current through Register Vol. 56, No. 18, September 16, 2024

Section 11:17C-2.2 - Remittance standards

(a) All premium funds shall be remitted to the insurer or other insurance producer, as applicable, within five business days after receipt of the funds except as otherwise required or provided by any of the following:

1. The insurance producer's contract with the insurer or written agreement with the insured;

2. Any controlling statute or administrative rule; or

3. The rules of any residual market mechanism created by or pursuant to any statute.

(b) All premiums due the insured shall be paid to the insured or credited to the insured's account within five business days after receipt by the insurance producer from the insurer or other insurance producer or premium finance company.

1. If the return premium is to be credited to the insured's account, the credit shall be shown and applied to the next billing statement sent to the insured.

2. If the credit is to be held on the insured's account and the account reflects a credit balance, the insurance producer shall send monthly written notification to the insured which clearly reflects a credit owed to the insured and shall be paid to the insured upon his demand.

(c) All title insurance settlement funds shall be disbursed within five business days after settlement except as determined by the parties at settlement.

(d) Cancellation for nonpayment of a premium where the insurance producer of record has advanced the premium shall follow the written request of the insurance producer who has advanced such funds to the insurer. The written request shall be signed by the insurance producer, setting forth the amount of money advanced by the insurance producer, the amount of money paid by the insured to the insurance producer, the provisions contained in the agreement between the insured and insurance producer as to payments, and facts concerning the breach of said agreement by the insured. A copy of the written request shall be mailed to the insured at the time that it is submitted to the insurer.

N.J. Admin. Code § 11:17C-2.2

Amended by R.1995 d.60, effective 2/6/1995.
See: 26 N.J.R. 4307(a), 27 N.J.R. 562(a).
Amended by R.2000 d.44, effective 2/7/2000.
See: 31 N.J.R. 3583(a), 32 N.J.R. 499(a).
In (b), added a reference to premium finance companies at the end of the introductory paragraph.