Key Takeaways
- The New Jersey Department of Banking and Insurance (DOBI) regulates all P&C insurance activities under New Jersey insurance law
- The Commissioner of Banking and Insurance is appointed by the Governor with Senate confirmation
- DOBI handles licensing, rate review, market conduct examinations, and consumer complaints for P&C insurance
- New Jersey uses a prior approval system for most P&C insurance rates
- DOBI enforces the New Jersey Insurance Trade Practices Act and Unfair Claims Settlement Practices Act
Last updated: January 2026
Department of Banking and Insurance (DOBI)
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The New Jersey Department of Banking and Insurance (DOBI) is the state agency responsible for regulating the Property & Casualty insurance industry in New Jersey.
The Commissioner of Banking and Insurance
The Commissioner is:
- Appointed by the Governor with Senate confirmation
- Serves at the pleasure of the Governor
- Responsible for enforcing New Jersey insurance statutes
- Authorized to adopt regulations, review rates, investigate violations, and discipline licensees
Commissioner Powers for P&C Insurance
| Power | Description |
|---|---|
| Licensing | Issue, suspend, and revoke producer licenses |
| Rate Review | Approve or disapprove P&C insurance rates |
| Market Conduct | Examine insurer business practices |
| Enforcement | Investigate and prosecute violations |
| Consumer Protection | Handle complaints and protect policyholders |
| Rulemaking | Adopt regulations interpreting insurance laws |
Rate Regulation
New Jersey uses a prior approval system for most P&C rates:
Key Provisions
- Prior Approval: Most P&C rates must be approved by DOBI before use
- Rate Filing: Insurers must file rates with actuarial justification
- Rate Standards: Rates must not be excessive, inadequate, or unfairly discriminatory
- Deemer Provision: If DOBI doesn't act within specified time, rates may be deemed approved
Rate Filing Requirements
| Line of Insurance | Approval Requirement |
|---|---|
| Personal Auto | Prior approval |
| Homeowners | Prior approval |
| Workers' Compensation | Prior approval |
| Commercial Lines | Prior approval (with some exceptions) |
Exam Tip: Remember that New Jersey's Commissioner is appointed, not elected. This is frequently tested.
DOBI Organization
DOBI operates through several divisions for P&C insurance:
- Office of Consumer Protection Services - Handles consumer complaints
- Licensing Services - Processes producer licenses
- Life and Health, Property and Casualty - Reviews rate filings
- Enforcement and Fraud Prevention - Investigates violations
- Office of the Ombudsman - Assists consumers with insurance issues
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Test Your Knowledge
How is the New Jersey Commissioner of Banking and Insurance selected?
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Test Your Knowledge
What rate regulation system does New Jersey use for most P&C insurance?
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