N.J. Admin. Code § 11:7-1.4

Current through Register Vol. 57, No. 1, January 6, 2025

Section 11:7-1.4 - Limitations and restrictions-municipal bonds

(a) Policies insuring municipal bonds shall be issued to cover only bonds of the type defined in N.J.A.C. 11:7-1.1.

(b) For the purpose of complying with the provisions of N.J.S.A. 17:18-9, the total net liability of an insurer in respect to any one issue of municipal bonds insured shall be the average annual amount due for principal and interest on insured securities of such issue, net of appropriate allowance for reinsurance.

(c) In no event, shall the total net liability exceed an amount representing 10 percent of the surplus to policyholders of the insurer.

N.J. Admin. Code § 11:7-1.4

Amended by R.1987 d.426, effective 10/19/1987.
See: 19 N.J.R. 1409(a), 19 N.J.R. 1908(a).
Deleted text from (b) through (b)1.iii "shall be such ... under its policy." and added text "insured shall be ... allowance for reinsurance."
Recodified from N.J.A.C. 11:7-1.3 and amended by R.2008 d.37, effective 2/19/2008.
See: 39 N.J.R. 1985(a), 40 N.J.R. 881(a).
Section was "Limitations and restrictions".
Former N.J.A.C. 11:7-1.4, Financial statements, recodified to N.J.A.C. 11:7-1.6.