17:47A-5. Prohibitions for risk retention groups; taxation of premiums
334 words·~2 min read·
/nj/title-17/chapter-47a/17-47a-5·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
5. a. No risk retention group, whether chartered in this State or another state, shall:
(1)Solicit the sale of or sell insurance to any person who is not eligible for membership in the group;
(2)Solicit the sale of or sell insurance if it is deemed to be in a hazardous condition or financially impaired;
(3)Sell or offer for sale any insurance coverage which is not permitted by the provisions of Title 17 of the Revised Statutes or which is declared unlawful by the highest court of this State; or
(4)Be owned by or controlled directly or indirectly by an insurer, or have an insurer as a member, except that this shall not apply in the case of a risk retention group in which all the members are insurers.
b. Notwithstanding the provisions of any other law to the contrary, no policy of insurance issued by a risk retention group, whether chartered in this State or otherwise, shall be required to be countersigned by an insurance producer residing in this State.
c. All premiums paid to risk retention groups not chartered in this State for coverage on risks within this State are subject to taxation at the same rate and are subject to the same interest, fines and penalties for nonpayment as that taxation which is applicable to surplus lines insurers. All premiums paid to risk retention groups chartered in this State for coverage on risks within this State are subject to taxation at the same rate and shall be subject to the same interest, fines, and penalties for nonpayment as that taxation which is applicable to foreign admitted insurers.
d. Each risk retention group, whether chartered in this State or otherwise, shall report all premiums paid to it which are attributable to risks insured within this State and shall remit the taxes owed on such premiums to, and on a form and in a manner required by, the Director of the Division of Taxation, in consultation with the commissioner.
L.1993,c.240,s.5.