Results 1151 - 1160 of 3226
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Insured’s refusal to pay for MVR | Ask PIA
Service fee regulation N.J.A.C. 11:17B requires that a producer who wants to charge a personal auto applicant for the costs of obtaining a motor vehicle report may do so, but must obtain a signed written fee agreement from the applicant. If an applicant refuses to pay the fee for the producer...
There is no reason you must assist an applicant who refuses to reimburse you for the cost of the MVR. However, under the old take-all-comers law, you would not have been permitted to reject the applicant.
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Elimination of anniversary rating date on workers’ compensation policies | Ask PIA
PIANY informed us of the elimination of the anniversary rating date for workers’ compensation policies in New York. I’m not really sure how this is going to impact my clients when it goes into effect. Can you explain it in more detail?
Only 10% of all policies have an anniversary rating date different from the policy effective date. This occurs when there has been a coverage gap or midterm change in policies. Despite having an ARD different from the policy effective date, policies that renew on or after May 1, 2017, will...
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Brokerage contracts and charging fees | Ask PIA
Our agency has entered into a broker contract with an insurance company to sell personal-lines policies. Throughout the contract, we are designated as a broker. However, the contract gives us the authority to solicit applications, receive premiums and to bind coverage. Producers acting as agents for a company may not...
No, service fees cannot be charged according to the Department of Banking and Insurance.The producer may be designated as a broker in the contract, however, under insurance regulations the producer is in fact “acting as an agent” (see definition of “insurance agent” in N.J.A.C. 11:17B-1.3). Accordingly, for the sale of personal...
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Condos and WindMAP | Ask PIA
Are condominium unit owners eligible to make an application through the New Jersey WindMAP?
The WindMAP guidelines state “any real property or personal property located within the state of New Jersey is potentially insurable.” The guidelines further state what types of properties are not insurable. According to Section C—General Rules of the Producer Guidelines for the New Jersey Insurance Underwriting Association, some examples of uninsurable...
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Producer contracts | Ask PIA
Is our agency required to have written contracts with all our licensed producers?
No. In 1993, PIANJ was successful in discouraging a proposed requirement that all agencies have written contracts with their employee producers. While it is solid business practice to have a contract with employee producers, PIANJ opposed a state mandate that would have required agencies to enter into written contracts by a specified...
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Insurer’s legal duty to notify auto policyholders | Ask PIA
We recently were terminated by an insurance company. I am concerned about the letters they are sending to our auto policyholders, stating that we are now a terminated agent. Also, we never received any copies of these letters from the company. Are they within the law on this?
Yes, it does appear that they are. The law requires a company which terminates an agency contract to notify, at the time of the agent’s termination, the agency’s personal auto policyholders in writing that: 1) the agent’s contractual relationship with the company is being terminated and the effective date of...
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Self-insurance | Ask PIA
How can someone become a self-insurer for motor vehicle insurance? What’s involved?
Persons (including organizations, but excluding governmental entities) in whose name more than 25 motor vehicles are registered or leased may be able to qualify as self-insurers by obtaining a certificate of self-insurance issued at the discretion of the commissioner of banking and insurance (see N.J.S.A. 39:6-52). The application for...
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DMV registrations: ’passenger’ vs. ’commercial’ | Ask PIA
I get confused by New York’s system of registering vehicles with either “commercial” or “passenger” plates. Is there a connection between the registration categories and our insurance distinction between commercial vs. personal automobile policies; or do these registration categories come into play in determining “business use” for rating purposes?
No, there may be no connection. The construction of a vehicle weighs significantly in the determination of a vehicle’s registration class. The construction and use of a vehicle for underwriting purposes may not necessarily match DMV’s criteria. Here’s an explanation of the New York vehicle registration classes from DMV regulations...
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Promotional items not rebating | Ask PIA
I think they raised the amount we can spend on agency promotional items such as calendars, etc. What is the current limit?
Prior to the passage of Chapter 291 of the Laws of 2012, the maximum retail value for these items was $15 (formerly $5) and the item was required to have conspicuously stamped or printed thereon the advertisement of the insurer, agent or broker. Now, you may offer items and other...
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NYAIP: Refunds for company rating errors | Ask PIA
My insured is in the New York Automobile Insurance Plan. The company incorrectly surcharged both the prior year’s policy and the current policy. We got that straightened out, but now the company wants to apply the refund as a credit on the insured’s unpaid installments. The insured wants a check....
According to the NYAIP Manual Section 14.E.2.f, “Return premium resulting from changes to the policy may be used to reduce the outstanding balance [owed on the policy].” However, Rule 29.D.3.e(3), states the insured has the option of receiving a dollar refund in lieu of a credit if an additional charge...