PLNJhard
A licensed New Jersey P&C producer accepts a personal auto application that was actually solicited by an unlicensed neighbor in exchange for a referral cut tied to each sale. Which NJ statute is most directly implicated against the licensed producer?
AN.J.S.A. 39:6A-8 — Verbal Threshold tort selection on a personal auto policy at the time of application
N.J.S.A. 17:22A-40 — accepting business from a person required to be licensed but who is not
CN.J.S.A. 17:28-1.1 — UM/UIM written rejection on a Standard Policy issued to the named insured
DN.J.S.A. 46:8B — Condominium Act
Why this is the answer
Under N.J.S.A. 17:22A-40, DOBI may suspend or revoke a producer's license when the producer knowingly accepts insurance business from a person who is required to be licensed but is not. Paying a sales-based referral cut to an unlicensed person also runs afoul of NJ's anti-rebating and unauthorized-compensation rules under N.J.S.A. 17:29A-15. The other choices are substantive coverage statutes, not producer discipline grounds.
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