P&CNJmedium
Under N.J.S.A. 17:22-6.40 et seq., a New Jersey surplus lines producer may place coverage with an eligible unauthorized insurer only after:
AObtaining written approval from the Governor of New Jersey before any surplus lines placement may proceed
BPosting a $1 million surety bond with the NJ Treasurer prior to binding any coverage with an eligible unauthorized insurer
Conducting a diligent search of the admitted market confirming the coverage is not procurable from authorized NJ insurers
DFiling the policy form with the NJ Attorney General for prior approval before binding coverage with an eligible unauthorized insurer
Why this is the answer
New Jersey's Surplus Lines Law requires the licensed surplus lines producer to make a good-faith effort to place the coverage in the admitted market first. Only after confirming unavailability (or that the risk qualifies as exempt commercial) may placement go to an eligible nonadmitted insurer on DOBI's eligible list.
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