PIA Search

Results 1111 - 1120 of 3226

  1. Risk Retention Act | Ask PIA

    What are the rules governing the operations of Risk Retention Groups and Risk Purchasing Groups in New Jersey?

    The operations of these entities in New Jersey are governed by the provisions of N.J.S.A. 17:47A-1 to 17:47A-12. Also, regulations and registration procedures pertaining to these groups are found in N.J.A.C. 11:2-36, which applies to foreign or alien RRGs and to PGs formed pursuant to the federal Risk Retention Act...

  2. Service fees for life business | Ask PIA

    Can a licensed producer charge a service fee on life insurance policies?

    Charging a service fee is not permissible. N.J.A.C. 11:17B-3.2(c) states, “No insurance producer may charge a service fee for services rendered in the sale or service of life or health insurance.”

  3. Hold-harmless agreements | Ask PIA

    We have always advised our general-contractor clients to have their subcontractors sign a hold-harmless agreement. Recently, we were told that hold-harmless agreements are illegal in New York and New Jersey. Is this true?

    Both New York and New Jersey law prohibit certain types of hold-harmless agreements in construction contracts. New Jersey’s law [N.J.S.A. 2A:40A-01] bars such agreements in construction contracts only where the person making the promise to indemnify (usually the subcontractor or the “the indemnitor”) agrees to indemnify the indemnitee (the general...

  4. Surplus-lines policies—fees | Ask PIA

    If a surplus-lines broker charges the retail broker $25 to place a homeowners policy, can the retail broker pass along this charge to the policyholder?

    On Dec. 20, 2016, the Department of Banking and Insurance clarified that a surplus-lines fee may be passed through to the policyholder, provided it does not exceed $50. The following is what DOBI stated in its letter of clarification: N.J.A.C. 11:17B-3.2(a)1 provides that where the producer is the originating...

  5. Sole proprietors and partners | Ask PIA

    Since sole proprietors and partners have the option to elect workers’ compensation coverage, how does it affect them when acting as a subcontractor? How will this affect jobs with general contractors and certificates of insurance?

    The fact that sole proprietors and partners can elect coverage does not impact a subcontractor’s status as an independent contractor. A judge’s determination of independent-contractor status will still be based on the common law “right to control” and “relative nature of the work” tests, as they are applied to the...

  6. Loss of reinsurance | Ask PIA

    We’ve been notified that one of our carriers is planning to get off a commercial liability and auto risk due to loss of reinsurance. However, this is a two-year policy and the company wants to terminate coverage after the first year. Can the company do this?

    Yes, if they follow proper procedure. Under New Jersey’s commercial policyholder protections, a company is permitted to nonrenew or cancel midterm due to loss of (or substantial changes in) applicable reinsurance (N.J.A.C. 11:1-20.4). To do so, the company must file a plan with the Department of Banking and Insurance at...

  7. Nonprofits’ Joint Insurance Funds for workers’ compensation | Ask PIA

    There is a certain religious denomination that has decided that all individual churches in New Jersey will get their workers’ compensation under a single policy. Is this arrangement legal?

    Yes. The religious denomination may lawfully insure its local churches under a single policy pursuant to Section 17:49A of the laws governing financial institutions and insurance. This section lets the board of a nonprofit corporation, by resolution, agree to participate with one or more other nonprofits in a joint insurance...

  8. Company documentation requests for cancellation | Ask PIA

    May an insurance company ask an automobile policyholder for documentation when the policyholder requests either that his auto policy be canceled or that a vehicle be removed from his policy. For example, many companies require that the policyholder provide a receipt from the Department of Motor Vehicles showing that the...

    Yes, according to the Department of Banking and Insurance, these requests are permissible.

  9. Out-of-state drivers | Ask PIA

    If a Pennsylvania driver gets into an accident in New Jersey, does the New Jersey verbal threshold apply?

    This point has been litigated all the way to the New Jersey Supreme Court. The Supreme Court upheld the provision of New Jersey law that says a nonresident insured by a policy issued in another state by a company licensed to transact business in New Jersey will be deemed to have selected...

  10. Policy servicing | Ask PIA

    Our agency was terminated by a personal auto insurer. Our customer recently bought a new car. He wanted to add it to his policy and insure it for physical damage. The company is refusing to add the physical damage coverage, because his existing (older) vehicle is not insured for physical...

    Show the company Section N.J.S.A. 17:22-6.14a(l), which says that “... no insurance company which has terminated its contractual relationship with an agent ... shall ... refuse to provide changes in the limits of liability or refuse to service a policyholder in any other manner which is in accordance with the...

Search
Filter Clear