Bill Text: NJ S940 | 2010-2011 | Regular Session | Introduced

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Bill Title: Provides for certain surplus lines producer fees to be determined by regulation.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2010-05-20 - Substituted by A586 [S940 Detail]

Download: New_Jersey-2010-S940-Introduced.html

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SENATE, No. 940

STATE OF NEW JERSEY

214th LEGISLATURE

 

INTRODUCED FEBRUARY 4, 2010

 

 

Sponsored by:

Senator  RAYMOND J. LESNIAK

District 20 (Union)

 

 

 

 

SYNOPSIS

     Provides for certain surplus lines producer fees to be determined by regulation.

 

CURRENT VERSION OF TEXT

     As introduced.

  

An Act concerning certain surplus lines producer fees and amending P.L.2001, c.210.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    Section 13 of P.L.2001, c.210 (C.17:22A-38) is amended to read as follows:

     13.  a.  No license granting surplus lines authority shall be issued or renewed unless the applicant holds or will hold property and casualty authorities.

     b.    No surplus lines producer shall charge any fee to an originating broker in connection with the negotiation or procurement of any contract of surplus lines insurance that shall exceed [$50] an amount set forth by the commissioner pursuant to regulation, plus the actual costs incurred for any services performed by a person that is not associated with the surplus lines producer, such as inspection services.

(cf: P.L.2001, c.210, s.13)

 

     2.    This act shall take effect on the first day of the third month next following enactment, but the Commissioner of Banking and Insurance may take any anticipatory administrative action in advance thereof as shall be necessary for the implementation of this act.

 

 

STATEMENT

 

     This bill provides that a surplus lines producer shall not charge any fee to an originating broker in connection with the negotiation or procurement of any contract of surplus lines insurance that exceeds an amount set forth by the commissioner pursuant to regulation, plus the actual costs incurred for any services performed by a person that is not associated with the surplus lines producer.  Under the current law, the maximum fee amount is set at $50, plus any actual costs for services by a person not associated with the producer.