P&CNJmedium
A risk retention group (RRG) chartered in another U.S. state that wishes to write commercial liability coverage in New Jersey must:
AObtain a full NJ certificate of authority, submit all rates and policy forms to DOBI for prior approval, and comply with every NJ countersignature statute before writing any commercial liability risk
BConvert to a NJ domestic insurer before writing any coverage
COperate exclusively as a surplus lines insurer through licensed brokers
Register with DOBI, provide its chartering-state plan of operations, and pay required fees, but is exempt from most NJ rate-and-form regulation under the federal LRRA
Why this is the answer
The federal Liability Risk Retention Act (LRRA) preempts most state regulation of foreign-domiciled RRGs. New Jersey's framework requires the RRG to register with DOBI, submit its chartering-state plan of operations, and pay fees and taxes, but it is exempt from most NJ rate, form, and countersignature requirements.
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