N.J. Admin. Code § 11:1-24.3 - Use of credit cards, charge cards, debit cards, and direct account deduction (alternative payment method) for payment of premiums

(a) The use of an alternative payment method by an insurer or insurance producer shall be optional and shall be permitted as long as the insurance laws of this State and other applicable provisions of law are not violated.

(b) Any insurer or insurance producer that agrees to allow the use of any one alternative payment method, or a combination of them, in the payment of insurance premiums for a particular product or products of insurance shall make that service available to all existing and prospective insureds who are invited to purchase the product being offered, and shall not limit the use of such payment option only to certain entities or persons among those being offered the same product.

(c) Insurers or insurance producers that offer the use of an alternative payment method as an option for payment of premium for a product or products shall make this option available for the payment of all subsequent installments of the premium; provided, however, that an insurer or insurance producer may discontinue the use of payment by that alternative method generally as a means of the payment of premiums, or for a particular credit card, charge card or debit card, if the insurer or insurance producer notifies the insured of the discontinuation at least 60 days prior thereto, or in individual cases in accordance with the insurer's rating system established pursuant to applicable law.

(d) An insurer or insurance producer shall not be permitted to require payment of insurance premiums by an alternative payment method only, except where such payment is part of the insurance marketing plan for that line or program (for example, offering life or health insurance to cardholders of a particular credit card or charge card with payments charged to that card).

Notes

N.J. Admin. Code § 11:1-24.3

Amended by R.2006 d.307, effective 9/5/2006.
See: 37 N.J.R. 4156(a), 38 N.J.R. 3586(a).
Substituted "or insurance producer" for ", insurance producer or limited insurance representative" throughout; and in (c), substituted "or insurance producers" for ", insurance producers and limited insurance representatives".