New Jersey Department of Banking and Insurance
Encyclopedia
The New Jersey Department of Banking and Insurance (DOBI) is one of 15 principal departments in New Jersey government. The Department’s mission is to regulate the banking, insurance and real estate industries in a professional and timely manner that protects and educates consumers and promotes the growth, financial stability and efficiency of these industries. The current Commissioner of the DOBI is Thomas B. Considine
.
, all executive and administrative offices are allocated among not more than 20 principal departments. Following the ratification of the 1947 State Constitution, the DOBI was one of 13 departments created. In 1970, the Department was split into two separate departments, Banking and Insurance respectively, only to be merged back together in 1996 as a cost savings measure by Governor Christine Todd Whitman
.
Since 1996, the commissioners of DOBI have been:
and 19 credit unions. The Division has been accredited by the Conference of State Bank Supervisors (CSBS) since 1986 and earned a five year reaccreditation in 2010.
The Division’s duties, specifically the Office of Depositories, include overseeing the financial solvency of state-chartered banks and savings & loan institutions while also enforcing actions against those in violation of the Department’s regulations. The Division also processes and reviews applications by depository institutions for new charters, branches, relocations, plans of acquisition, mergers, bulk sales, stock conversions and auxiliary offices.
The Office of Consumer Finance conducts similar financial solvency examinations on credit unions and also regulates and responds to complaints relating to a number of different types of licensed lenders, which include:
The Real Estate Commission, which is located within the Division of Banking, ensures that members of the real estate industry comply with existing laws and regulations. When violations are suspected, the Commission investigates these claims and either resolves them or conducts hearings concerning the violations. Additionally, the Commission registers all licensed brokers in the state and inspects their operations and offices. The formal Commission consists of 8 members (7 appointed by the Governor and one government representative) that conduct hearings related to potential violations.
(NAIC) for five years.
Among its tasks, the Division oversees the solvency of the various companies and ensures consumer protections while periodically examining the licensed entities within the industry for compliance issues. Additionally, the Division licenses and regulates insurance agents and brokers (producers).
The Property & Casualty Section is charged with the regulation of rates, rules and forms for property and casualty insurance. The section regulates personal, commercial and title insurance sold in the state.
The Life & Health Bureaus are responsible for the review and approval of life insurance forms, annuity contracts and synthetic guaranteed investment contract (GIC) forms issued in New Jersey to ensure that they comply with insurance laws and regulations and the review and approval of individual and group health insurance contracts and rates within the Department’s jurisdiction, respectively.
The Division also oversees New Jersey’s Individual Health Coverage (IHC) Program and Small Employer Health (SEH) Program for companies employing 2-50 employees. Through the IHC, people without access to employer or government sponsored health care programs can purchase health coverage for themselves and their families from a variety of private carriers, regardless of their age or health status. The SEH establishes standard health benefit plans and ensures that small employers: have access to small group health benefits plans without regard to the occupation of the group, or the health status of any of the group’s members; and have the ability to renew the coverage from year to year regardless of the group’s claims experience or any changes in the health status of the group’s members. Additionally, NJ Protect is the state’s federally subsidized health insurance option for those residents with pre-existing medical conditions.
The Office of Solvency Regulation represents a major portion of the Department’s core mission in the regulation of the financial solvency of New Jersey’s licensed insurers. Due to the large number of multi-state insurers, the Department utilizes a national state-based system of regulation in order to help meet this core mission.
The Office of Consumer Protection Services investigates regulated industries for violations and is responsible for enforcement actions when any such violations are uncovered.
The Bureau of Fraud Deterrence handles investigations and prosecutions for insurance fraud following the transfer of these responsibilities from the Office of Insurance Fraud Prosecutor within the Department of Law and Public Safety as part of the FY 2010 state budget.
. The Department also maintains a consumer center in Newark
along with offices in Cherry Hill
and Whippany
.
Thomas B. Considine
Thomas B. Considine is the Commissioner of the New Jersey Department of Banking and Insurance. Prior to being named Commissioner, Considine worked at MetLife, Inc., a global financial services company, for nearly 17 years...
.
History
Under the New Jersey State ConstitutionNew Jersey State Constitution
The Constitution of the State of New Jersey is the basic governing document of the State of New Jersey. In addition to three British Royal Charters issued for East Jersey, West Jersey and united New Jersey while they were still colonies, the state has been governed by three constitutions...
, all executive and administrative offices are allocated among not more than 20 principal departments. Following the ratification of the 1947 State Constitution, the DOBI was one of 13 departments created. In 1970, the Department was split into two separate departments, Banking and Insurance respectively, only to be merged back together in 1996 as a cost savings measure by Governor Christine Todd Whitman
Christine Todd Whitman
Christine Todd "Christie" Whitman is an American Republican politician and author who served as the 50th Governor of New Jersey from 1994 to 2001, and was the Administrator of the Environmental Protection Agency in the administration of President George W. Bush from 2001 to 2003. She was New...
.
Since 1996, the commissioners of DOBI have been:
| Name | Term |
|---|---|
| Elizabeth Randall Elizabeth Randall Elizabeth Randall is an American Republican Party politician who serves as a Commissioner of the New Jersey Board of Public Utilities and served on the Bergen County Board of Chosen Freeholders from 2003 to 2007... |
June 28, 1996 - August 24, 1998 |
| Jaynee LaVecchia Jaynee LaVecchia Jaynee LaVecchia is a Justice who was nominated to serve on the New Jersey Supreme Court on January 6, 2000. She was accepted by the New Jersey Senate and sat until 2007 when her term expired... |
August 24, 1998 - January 18, 2000 |
| Karen L. Suter | January 18, 2000 - October 3, 2001 |
| Donald Bryan Donald Bryan Donald Bryan is the former Acting Commissioner of Banking and Insurance in New Jersey. A career employee of his department, served as Director of the Division of Insurance from 1999 to 2006, where he served two separate stints as acting commissioner.... (acting) |
October 3, 2001 - March 12, 2002 |
| Holly Bakke | March 13, 2002 - March 1, 2005 |
| Donald Bryan Donald Bryan Donald Bryan is the former Acting Commissioner of Banking and Insurance in New Jersey. A career employee of his department, served as Director of the Division of Insurance from 1999 to 2006, where he served two separate stints as acting commissioner.... (acting) |
March 1, 2005 - March 1, 2006 |
| Steven M. Goldman Steven M. Goldman Steven M. Goldman served as the Commissioner of Banking and Insurance of New Jersey from 2006-2009. He was nominated to the position in February 2006 by Governor of New Jersey Jon Corzine. Goldman is an attorney who specialized in banking and insurance law, prior to his appointment as... |
March 1, 2006 - July 16, 2009 |
| Neil N. Jasey (acting) | July 17, 2009 - January 18, 2010 |
| William Rader (acting) | January 19, 2010 - February 8, 2010 |
| Thomas B. Considine Thomas B. Considine Thomas B. Considine is the Commissioner of the New Jersey Department of Banking and Insurance. Prior to being named Commissioner, Considine worked at MetLife, Inc., a global financial services company, for nearly 17 years... |
February 8, 2010 – Present |
Division of Banking
The Division of Banking licenses and regulates all state-chartered financial institutions, currently numbering 88 banksBank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
and 19 credit unions. The Division has been accredited by the Conference of State Bank Supervisors (CSBS) since 1986 and earned a five year reaccreditation in 2010.
The Division’s duties, specifically the Office of Depositories, include overseeing the financial solvency of state-chartered banks and savings & loan institutions while also enforcing actions against those in violation of the Department’s regulations. The Division also processes and reviews applications by depository institutions for new charters, branches, relocations, plans of acquisition, mergers, bulk sales, stock conversions and auxiliary offices.
The Office of Consumer Finance conducts similar financial solvency examinations on credit unions and also regulates and responds to complaints relating to a number of different types of licensed lenders, which include:
- Mortgage Banker;
- Correspondent Mortgage Banker;
- Mortgage Broker;
- Secondary Lender;
- Consumer Lender;
- Sales Finance Company;
- Mortgage Solicitor;
- Motor Vehicle Installment Seller;
- Home Repair Contractor/Home Repair Salesperson;
- Home Financing Agency;
- Pawnbroker;
- Insurance Premium Finance Company;
- Debt Adjuster (Non-Profit Consumer Credit Agency);
- Foreign Money Transmitter;
- Money Transmitter; and
- High Cost Home Loan Credit Counselor.
The Real Estate Commission, which is located within the Division of Banking, ensures that members of the real estate industry comply with existing laws and regulations. When violations are suspected, the Commission investigates these claims and either resolves them or conducts hearings concerning the violations. Additionally, the Commission registers all licensed brokers in the state and inspects their operations and offices. The formal Commission consists of 8 members (7 appointed by the Governor and one government representative) that conduct hearings related to potential violations.
Division of Insurance
The Division of Insurance regulates the state’s insurance industry, including the life, health, and property & casualty insurance industries. The Division currently employs approximately 330 individuals in four units. The Division was reaccredited in 2010 by the National Association of Insurance CommissionersNational Association of Insurance Commissioners
The National Association of Insurance Commissioners is an Internal Revenue Code Section 501 non-profit organization which seeks to organize the regulatory and supervisory efforts of the various state insurance commissioners from around the United States. The NAIC was formed in 1871. Its current...
(NAIC) for five years.
Among its tasks, the Division oversees the solvency of the various companies and ensures consumer protections while periodically examining the licensed entities within the industry for compliance issues. Additionally, the Division licenses and regulates insurance agents and brokers (producers).
The Property & Casualty Section is charged with the regulation of rates, rules and forms for property and casualty insurance. The section regulates personal, commercial and title insurance sold in the state.
The Life & Health Bureaus are responsible for the review and approval of life insurance forms, annuity contracts and synthetic guaranteed investment contract (GIC) forms issued in New Jersey to ensure that they comply with insurance laws and regulations and the review and approval of individual and group health insurance contracts and rates within the Department’s jurisdiction, respectively.
The Division also oversees New Jersey’s Individual Health Coverage (IHC) Program and Small Employer Health (SEH) Program for companies employing 2-50 employees. Through the IHC, people without access to employer or government sponsored health care programs can purchase health coverage for themselves and their families from a variety of private carriers, regardless of their age or health status. The SEH establishes standard health benefit plans and ensures that small employers: have access to small group health benefits plans without regard to the occupation of the group, or the health status of any of the group’s members; and have the ability to renew the coverage from year to year regardless of the group’s claims experience or any changes in the health status of the group’s members. Additionally, NJ Protect is the state’s federally subsidized health insurance option for those residents with pre-existing medical conditions.
The Office of Solvency Regulation represents a major portion of the Department’s core mission in the regulation of the financial solvency of New Jersey’s licensed insurers. Due to the large number of multi-state insurers, the Department utilizes a national state-based system of regulation in order to help meet this core mission.
The Office of Consumer Protection Services investigates regulated industries for violations and is responsible for enforcement actions when any such violations are uncovered.
The Bureau of Fraud Deterrence handles investigations and prosecutions for insurance fraud following the transfer of these responsibilities from the Office of Insurance Fraud Prosecutor within the Department of Law and Public Safety as part of the FY 2010 state budget.
Location
The Department's main offices are located in the Mary Roebling Building at 20 West State Street (corner of West State Street and North Warren Street), in Trenton, New JerseyTrenton, New Jersey
Trenton is the capital of the U.S. state of New Jersey and the county seat of Mercer County. As of the 2010 United States Census, Trenton had a population of 84,913...
. The Department also maintains a consumer center in Newark
Newark, New Jersey
Newark is the largest city in the American state of New Jersey, and the seat of Essex County. As of the 2010 United States Census, Newark had a population of 277,140, maintaining its status as the largest municipality in New Jersey. It is the 68th largest city in the U.S...
along with offices in Cherry Hill
Cherry Hill, New Jersey
Cherry Hill is a township in Camden County, New Jersey, in the United States. As of the 2010 United States Census, the township had a population of 71,045, representing an increase of 1,080 from the 69,965 residents enumerated during the 2000 Census...
and Whippany
Whippany, New Jersey
Whippany is an unincorporated area located within Hanover Township in Morris County, New Jersey. Whippany's name is derived from the Whippanong Native Americans, a tribe that once inhabited the area...
.