P&CNJhard
Under N.J.S.A. Title 17, the minimum paid-in capital and surplus requirements that a NJ-admitted property/casualty insurer must satisfy are primarily designed to:
Provide a solvency cushion protecting policyholders against unexpected loss and reserve deficiencies
BEstablish the maximum commission a producer can earn on surplus-lines placements brokered through an unauthorized insurer
CSet the floor for premium tax owed to the NJ Treasurer
DDetermine which county courts may hear coverage disputes
Why this is the answer
NJ scales minimum paid-in capital and surplus requirements by the lines of insurance an insurer writes. The purpose is solvency protection: capital absorbs unexpected adverse loss development and reserve deficiencies before policyholder claims are impaired, supporting DOBI's prudential oversight.
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