N.J. Admin. Code § 11:3-8.6

Current through Register Vol. 56, No. 23, December 2, 2024

Section 11:3-8.6 - Issuance of nonrenewal notices

(a) A notice of nonrenewal shall not be valid unless it is mailed or delivered by the insurer to the insured no less than 60 days and no more than 90 days prior to the expiration of the current policy, except that the Commissioner may direct by Order that a notice of nonrenewal must be mailed or delivered up to 90 days prior to the expiration of the current policy. No such order shall be applicable to nonrenewal notices issued within 30 days after the date of the order. A notice of nonrenewal shall not be valid unless it specifies the reason(s) underlying the action being taken. Nonrenewal notices based on the insured's failure to meet the insurer's acceptance criteria shall identify the specific acceptance criteria that the insured being non-renewed has failed to fulfill. Non-renewal notices shall identify the specific facts relied upon by the insurer in determining to non-renew the insured, including dates and other facts necessary to identify the incident(s), which form the basis for the insurer's determination to nonrenew the policy.

1. In the event action is being taken under 11:3-8.4(a)2 or 3, or which would be subject to 11:3-8.5(c), the notice shall also specify that the action is being taken in accordance with 11:3-8.4(a)2 or 3 or is subject to 11:3-8.5(c), as applicable, and shall be consecutively numbered in each territory.

(b) Notices of nonrenewal shall include or be accompanied by the statement prescribed at (b)1 below, which shall be clearly and prominently set out in boldface type or other manner, which draws the reader's attention.

1. "If you have reason to believe that our decision to nonrenew your policy is not in compliance with New Jersey Regulation N.J.A.C. 11:3-8, you may file a written complaint with the New Jersey Department of Banking and Insurance, Office of Consumer Protection Services, PO Box 471, Trenton, NJ 08625-0471, or electronically at www.dobi.nj.gov . Your written complaint should indicate the facts on which you are basing your complaint."

(c) A notice of nonrenewal shall not be effective unless (c)3 below and either (c)1 or 2 below are satisfied:

1. The notice is sent by certified mail; or

2. The notice is sent by regular mail and at the time of the mailing of the notice the insurer has obtained from the U.S. Postal Service a date-stamped proof of mailing showing the name and address of the insured; and

3. The insurer retains a duplicate copy of the mailed notice of non-renewal that is certified to be a true copy.

N.J. Admin. Code § 11:3-8.6

Repeal and New Rule, R.1999 d.270, effective 8/16/1999.
See: 30 N.J.R. 2564(a), 31 N.J.R. 2383(b).
Section was "Additional nonrenewals".
Repeal and New Rule, R.2008 d.380, effective 12/15/2008 (operative January 1, 2009).
See: 40 N.J.R. 3572(a), 40 N.J.R. 6970(b).
Section was "Other nonrenewals-standards".
Recodified from N.J.A.C. 11:3-8.5 and amended by R.2011 d.242, effective 9/19/2011.
See: 42 N.J.R. 1984(a), 43 N.J.R. 2525(a).
In (a)1, inserted "or 3, or which would be subject to N.J.A.C. 11:3-8.5(c)" and "also", and substituted "or 3 or is subject to N.J.A.C. 11:3-8.5(c), as applicable," for "(two percent territorial nonrenewal)"; and deleted (a)2. Former N.J.A.C. 11:3-8.6, Limitations on nonrenewal, recodified to N.J.A.C. 11:3-8.7.
Notice of readoption with technical change, effective 1/3/2022.
See: 54 N.J.R. 67(b).