DEPARTMENT OF BANKING AND INSURANCE
DIVISION OF INSURANCE
Data Submission Requirements for all Licensed Producers with Surplus Lines Authority and Eligible Surplus Lines Insurers
Proposed Amendments: N.J.A.C. 11:19-3.1, 3.2, 3.3 and 3.4.
Proposed Repeal: N.J.A.C. 11:19-3 Appendix A
Authorized By: Karen L. Suter, Commissioner, Department of Banking and Insurance.
Authority: N.J.S.A.17:1-8.1; 17:1-15e; and 17:22-6.40 et. seq.
Proposal Number: PRN 2001-04
Submit comments by February 1, 2001 to:
Fax: (609) 292-0896
The agency proposal follows:
The Department of Banking and Insurance ("Department") is proposing amendments to its rules dealing with data submission requirements for all licensed producers with surplus lines authority and eligible surplus lines insurers. The current rules require eligible surplus lines insurers to report to the Department information about net written premiums, including transaction numbers. The Departmentís current rules specify a format by which this information should be reported and submitted to the Department.
The information submitted to the Department by eligible surplus lines insurers on tape/cartridge is reconciled against the tax information submitted by producers.
Since these rules were originally adopted, the medium by which this information is being collected and submitted to the Department has become outdated. The Department is reviewing different mediums and processes for the reporting and submission of this information. Until the Departmentís review is complete, eligible surplus line insurers shall continue to maintain the requested information but are no longer required to report this information to the Department on tape or cartridge beginning with the first quarter of 2001 (May 15). Insurers are required to maintain a report for inspection by the Department upon request. Also, in N.J.A.C. 11:19-3.3(d), the remittance deadlines for premium taxes and surcharges are changed from April 30, July 31, October 31 and January 31 to May 15, August 14, November 14 and February 14.
The proposed amendments and repeal will have a positive social impact on eligible surplus lines insurers because they are no longer required to submit information about net written premiums and the transaction number along with other data to the Department by tape or cartridge. There should be no impact on the public because eligible surplus lines insurers must still maintain the required information and provide it to the Department upon request.
Eligible surplus lines insurers may experience an economic benefit since pursuant to the proposed amendments, insurers only have to maintain a report on the required information and only submit it to the Department upon request.
Federal Standards Statement
A Federal standards analysis is not required because these amendments and repeal are not subject to any Federal requirements or standards.
The Department does not anticipate that any jobs will be generated or lost as consequence of these proposed amendments and repeal.
Agriculture Industry Impact
The Department does not expect any impact on the agriculture industry from these amendments and repeal.
The proposed amendments substitute a recordkeeping requirement for a reporting requirement on eligible surplus lines insurers qualified to transact business in New Jersey, some of which may be small businesses as defined under the Regulatory Flexibility Act, N.J.S.A. 52:14B-16 et seq. The Department does not believe that additional costs will be incurred or that professional services will be needed in order to comply with these rules. The proposed amendments eliminate the need for companies to report the information required by this subchapter by tapes or cartridges. The information required by this subchapter will still have to be prepared and maintained. Therefore, no differentiation in requirements based on business size is necessary.
Full text of the proposed repeal may be found in the New Jersey Administrative Code at N.J.A.C. 11:19-3 Appendix A.
Full Text of the proposal follows (additions indicated in boldface thus; deletions indicated in brackets [thus]):
11:19-3.1 Purpose and scope
The following words and terms, as used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:
. . .
["EBCDIC" means the Extended Binary Coded Decimal Interchange Code which is a computer code for representing data. This code is used in all IBM mainframe systems.]
. . .
11:19-3.3 General [data filing] requirements
[1. Foreign insurers and alien insurers shall report their net written premiums for the State of New Jersey no later than 45 days after the end of the calendar quarter. The due dates for the net written premiums reports are as follows: May 15 for the first quarter; August 15 for the second quarter; November 15 for the third quarter; and February 15 for the fourth quarter.
2. Alien insurers which are not technically capable to report pursuant to (a)1 above shall report their net written premiums for the State of New Jersey no later than nine months after the end of the calendar quarter. The due dates for the net written premiums reports are as follows: December 1 for the first quarter; March 1 for the second quarter; June 1 for the third quarter; and September 1 for the fourth quarter.]
11:19-3.4 SLPS subsystem [filing] requirements for all surplus lines insurers
[ (c) Each eligible surplus lines insurerís report of their net written premiums for the State of New Jersey shall be set forth in accordance the record layouts in the Appendices to this subchapter.
1. The report shall include an internal IBM standard tape label containing:
2. Tapes and cartridges may be delivered or mailed but shall be received by the Department by the due date to:
New Jersey Department of Banking and Insurance
FEMS Ė SLPS Project
20 West State Street
PO Box 325
Trenton, NJ 08625-0325
3. Tapes and cartridges shall be clearly labeled with the companyís name and the date. The box and the label shall be printed or typed in capital letters.
5. An external label shall be affixed to the tapes or cartridges and shall include the following information:
6. The submission shall also include:
7. Surplus lines insurers that are not technically capable of providing the Department with an IBM standard label pursuant to (c)1 above, shall indicate that no internal label is included by writing the letters "NL" on the external label and on the cover letter. ]
Instructions for Completing Licensed New Jersey Surplus Lines
Producer Quarterly Tax Return
(No change in text.)