N.J.S.A 17:51A-5. Powers of supervision

17:51A-5. Powers of supervision

5. During the period of supervision, the commissioner or his designated appointee shall serve as the administrative supervisor. The commissioner may prohibit the insurer from doing any of the following during the period of supervision, without the prior approval of the administrative supervisor:

a. Dispose of, convey or encumber any of its assets or its business in force;

b. Withdraw any of its bank accounts;

C. Lend any of its funds;

d. Invest any of its funds;

e. Transfer any of its property;

f. Incur any debt, obligation or liability;

g. Merge or consolidate with another company;

h. Approve new premiums or renew any policies;

i. Enter into any reinsurance contract or treaty;

j. Terminate, surrender, forfeit, convert or lapse any insurance policy, certificate or contract, except for nonpayment of premiums;

k. Release, pay or refund premium deposits, accrued cash or loan values, unearned premiums, or other reserves on any insurance policy, certificate or contract;

l. Make any material change in management;

m. Increase salaries and benefits of officers, directors, or employees, or the payment of bonuses, dividends or other payments; or

n. Such other acts as the commissioner deems necessary to protect the interests of the insurer’s policyholders and the publiC.

L.1993,C. 245,S.5.


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