Regulators in New Jersey said they have begun examining a pile of documents this week to determine if the Republican candidate for governor, Douglas R. Forrester, violated laws against insurer campaign contributions.

Mr. Forrester has a 51 percent interest in a Washington, D.C.-based captive insurer==Heartland Fidelity Inc.==and the company contends that because it is not located in New Jersey, it is not subject to state law against regulated businesses giving funds to campaigns.

Democrats==including Mr. Forrester's gubernatorial opponent, U.S. Sen. Jon Corzine==have called for an investigation, arguing that that the law pertains to any insurer doing business in the state, even if it is not domiciled there.

Heartland sent the department a letter asking clarification of their status. Late last Friday, in response to a departmental request, "a large stack of documents" arrived that are being reviewed for completeness and content, said Jaimee Gilmartin, a spokeswoman for the N.J. Department of Banking and Insurance.

Ms. Gilmartin said at this point she had no idea when the inquiry would be completed.

A spokesman for Heartland, Peter McDonough, said the information that was sent over generally consisted of "documents relating to Heartland's regulation and registration in Washington, D.C."

Among the laws at issue is Section 34-2a of the state's election statutes, part of the criminal law, which outlaws contributions by insurance corporations. The measure was passed during a reform era in 1911 when a number of bills were passed to halt the influence of election spending by a variety of industries.

Heartland Fidelity Inc. is a captive that provides stop-loss coverage for customers of Mr. Forrester's BeneCard Services, Inc., which manages pharmacy benefits. Democrats charge that his ownership means his use of personal monies to fund his campaign is illegal.

Special Reports /

N.J. Regulators Study Documents In Campaign Flap

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