Bill Text: NJ A4384 | 2016-2017 | Regular Session | Introduced
Bill Title: Revises licensure requirements for nonresidents title insurance producers.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2016-12-12 - Introduced, Referred to Assembly Financial Institutions and Insurance Committee [A4384 Detail]
Download: New_Jersey-2016-A4384-Introduced.html
Sponsored by:
Assemblywoman MARLENE CARIDE
District 36 (Bergen and Passaic)
SYNOPSIS
Revises licensure requirements for nonresident title insurance producers.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning certain insurance producers and amending P.L.2001, c.210.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 9 of P.L.2001, c.210 (C.17:22A-34) is amended to read as follows:
9. a. Unless denied licensure pursuant to section 15 of [this act] P.L.2001, c.210 (C.17:22A-40), a nonresident person shall receive a nonresident insurance producer license if:
(1) The person is currently licensed as a resident insurance producer in good standing in his home state;
(2) The person has submitted the proper request for licensure and has paid the fees required by section 19 of [this act] P.L.2001, c.210 (C.17:22A-44);
(3) The person has submitted or transmitted to the commissioner the application for licensure that the person submitted to his home state, or in lieu of the same, a completed uniform application; and
(4) The person's home state awards nonresident insurance producer licenses to residents of this State on the same basis.
b. The commissioner may verify the nonresident insurance producer's licensing status through the Producer Database maintained by the NAIC.
c. A nonresident insurance producer who moves from one state to another state or a resident insurance producer who moves from this State to another state shall file a change of address and provide certification from the new resident state within 30 days of the change of legal residence. No fee or license application shall be required.
d. Subject to section 13 of [this act] P.L.2001, c.210 (C.17:22A-38), a person licensed as a surplus lines insurance producer in his home state shall receive a nonresident surplus lines insurance producer license pursuant to subsection a. of this section.
e. Subject to section 14 of [this act] P.L.2001, c.210 (C.17:22A-39), a person licensed as a limited line credit insurance or other type of limited lines insurance producer in his home state shall receive a nonresident limited lines insurance producer license, pursuant to subsection a. of this section, granting the same scope of authority as granted under the license issued by the producer's home state.
f. Each licensed
nonresident insurance producer shall, by application for and issuance of, a
license be deemed to have appointed the commissioner as agent to receive
service of original
legal process in this State in any cause of action or legal proceedings arising
within this State out of transactions under the license. Service upon the
commissioner shall be of the same force and effect as if served on the
nonresident insurance producer. This appointment shall be irrevocable for as
long as there can be any cause of action against the nonresident insurance
producer arising out of insurance transactions for which a nonresident
insurance producer license is required. Duplicate copies of the legal process
shall be served upon the commissioner. At the time of service the commissioner
shall be paid a fee established pursuant to section 19 of [this act] P.L.2001,
c.210 (C.17:22A-44) payable as costs in the action. Upon receiving service,
the commissioner shall send one of the copies by registered or certified mail,
return receipt requested, to the named nonresident insurance producer at his
last known business or residence address.
g. The commissioner shall be immune from all civil actions resulting from the licensee's failure to receive service of process if the commissioner, pursuant to subsection f. of this section, forwards the service to the last business or residence address filed by the licensee as his address. Immunity under this subsection is in no way intended to diminish or otherwise affect the immunity available to the commissioner pursuant to the "New Jersey Tort Claims Act," N.J.S.59:1-1 et seq.
h. Notwithstanding the provisions of subsection a. of this section, a nonresident person that sells, solicits, or negotiates title insurance shall not receive a nonresident insurance producer license unless the nonresident person has a direct affiliation or business relationship with a resident person that sells, solicits, or negotiates title insurance and currently holds a valid resident insurance producer license pursuant to section 8 of P.L.2001, c.210 (C.17:22A-33).
(cf: P.L.2001, c.210, s.9)
2. This act shall take effect on the 90th day next following enactment.
STATEMENT
This bill amends the "New Jersey Insurance Producers Licensing Act of 2001," P.L.2001, c.210 (C.17:22A-26 et seq.) (the "Producer Act"), to revise the licensure of nonresident insurance producers that sell, solicit, or negotiate title insurance in this State.
Currently, the Producer Act provides for the licensure of nonresident insurance producers to sell, solicit, or negotiate any line of insurance permitted under State law. The Producer Act places certain requirements on these out-of-State insurance producers in order to receive a nonresident insurance producer license. However, the Producer Act does not require the nonresident insurance producer to have any affiliation with a resident insurance producer, regardless of the line of insurance.
This bill provides that a license will not be issued to a nonresident insurance producer that sells, solicits, or negotiates title insurance unless the nonresident insurance producer has a direct affiliation or business relationship with a resident insurance producer that sells, solicits, or negotiates title insurance and currently holds a resident insurance producer license.
