New Jersey Administrative Code

(a) The subchapter sets forth the filing requirements and approval procedures for nonprofit corporation and Keys amendment facility joint insurance funds pursuant to N.J.S.A. 17:49A-1 et seq. (b) This subchapter applies to all joint insurance funds formed pursuant to N.J.S.A. 17:…

(a) A member of the fund shall remain a member for the full term of membership, as provided in the fund's bylaws, unless earlier terminated by the fund for nonpayment of assessments, noncompliance with risk management or underwriting standards, or for other reasons subject to pri…

The insolvency or bankruptcy of a member does not relieve the fund or any other member of joint and several liability for the payment of any claims incurred by the member during the period of its membership, including, but not limited to, being subject to and liable for supplemen…

(a) A fund may not voluntarily dissolve or otherwise cease to do business and distribute its assets to its members, unless and until it satisfies the following requirements: 1. A majority of the fund's members shall have voted in favor of a resolution to dissolve the fund, pursua…

(a) Pursuant to the terms of the indemnity and trust agreement, each fund shall establish a separate trust fund account in accordance with N.J.A.C. 11:15-6.6(b)10 from which monies shall be disbursed solely for the payment of claims, allocated claim expenses and excess insurance …

Each fund shall establish an administrative account for each fund year which shall be utilized for payment of the fund's general operating expenses, including, but not limited to, loss prevention activities, data processing services and general legal expenses. A fund shall not be…

(a) Each participating member of a joint insurance fund shall pay to the fund its assessments as required by the joint insurance fund. During the first year of operation of a joint insurance fund these contributions shall be paid in two equal installments, the first installment p…

(a) Each fund shall levy upon its members an additional assessment whenever needed or so ordered by the Commissioner, to supplement the fund's claim or loss retention or administrative accounts to assure maintenance of required surplus pursuant to N.J.A.C. 11:15-6.1 5(b) and paym…

Should any member of a fund fail or refuse to pay as directed its assessment(s) to the fund or to pay as directed any supplemental assessment(s), or should the fund commissioners fail to assess funds required to meet the obligations of the fund, the chairman of the fund commissio…

Prior to any commitment or agreement requiring the expenditure of funds by the joint insurance fund, the custodian of the fund's assets shall certify the availability of sufficient unencumbered funds in the account to fully pay all charges or commitments to be accepted. Notes N.J…

(a) The free balance of any account maintained by a joint insurance fund, whether for claim or loss retention, administrative, or contingency, shall be invested to obtain the maximum interest return practicable. All investments shall be made in accordance with the fund's cash man…

The following words and terms, as used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise. "Actuary" means a person who is a Fellow in good standing of the Casualty Actuarial Society with three years recent experience in loss res…

(a) Any monies for a fund year in excess of the amount necessary to fund all obligations for that fiscal year as certified by an actuary may be utilized to satisfy the surplus requirements set forth in N.J.A.C. 11:15-6.1 5(b) for the subsequent fiscal year immediately after the e…

(a) All disbursements, payment of claims settlements or other expenditure of funds of the joint insurance fund whether for administrative expenses or for claims purposes shall be approved by a majority of the fund commissioners or executive committee, as applicable, unless approv…

(a) Consistent with N.J.A.C. 11:15-6.6(a)6, each fund providing primary or underlying coverage on a self-insured or commercially insured basis shall secure excess insurance or reinsurance in a form, in an amount and by an insurer, or other entity authorized to provide such covera…

(a) An annual certified report in a form acceptable to the Commissioner shall be prepared by each fund, filed with the Department, and made available to each fund member on or before April 1 of each year. The report shall include: 1. An annual audited statement of the financial c…

(a) In addition to any examination conducted pursuant to N.J.A.C. 11:15-6.6(g), the Commissioner may conduct an examination of any fund as he or she deems necessary, or at any time the Commissioner has reasonable cause to believe the fund may be insolvent or in a financial condit…

(a) No servicing organization of a fund or producer appointed pursuant to N.J.A.C. 11:15-6.6(d)10, or their employees, officers or directors shall have either a direct or indirect financial interest in the administrator of that fund, or be an employee, officer or director of the …

The fund shall adopt a written conflict of interest policy, which shall be provided to each fund member, and shall include such provisions as the fund commissioners deem appropriate, including, but not limited to, a conflict of interest questionnaire. A copy of the conflict of in…

(a) The Commissioner shall give prior written notice of any proposed suspension, revocation of authority, cease and desist order, or other enforcement action to the fund commissioners, executive committee, or member as the case may be, or to any person to whom the proposed enforc…

(a) After notice and opportunity for a hearing, as provided in N.J.A.C. 11:15-6.2 7, the Commissioner may issue an order revoking or suspending a fund's authority or requiring a person or fund to cease and desist from engaging in an act or practice found to be in violation of any…

(a) Except as otherwise specifically provided in this subchapter, funds subject to this subchapter shall comply with all of the requirements contained in this subchapter commencing with the fund year immediately following April 7, 1997, or October 4, 1997, whichever is later. (b)…

(a) The board or owner, as appropriate, of any nonprofit corporation or Keys amendment facility may by resolution or otherwise in writing agree to join together with any other such corporation(s) or facility(ies) to establish a joint insurance fund as defined in this subchapter. …

The rules contained in this subchapter and any of the provisions thereof shall be severable, and if any of its provisions shall be held to be unconstitutional or otherwise invalid, the decision of the court shall not affect the validity of the remaining rules or any of the provis…

(a) All monies, assessments, funds and other assets of a joint insurance fund shall be under the exclusive control of its insurance fund commission. (b) Each joint insurance fund shall adopt a resolution designating a public depository or depositories for its monies. Such resolut…

(a) Each joint insurance fund shall file with the Department for approval by the Commissioner its bylaws and plan of risk management and any amendments thereto. In addition, the initial filing shall contain and be accompanied by the information and documentation specified at N.J.…

(a) The commissioners shall prepare and, after the approval by resolution of the board or owner of each participating member, shall adopt bylaws for the joint insurance fund. The bylaws shall include, but not be limited to: 1. Procedures for the organization and administration of…

If the Commissioner determines that the bylaws or plan of risk management of the fund or any subsequent amendments thereto do not contain all of the information set forth in N.J.A.C. 11:15-6.6, are not submitted in the proper format set forth in N.J.A.C. 11:15-6.5, or otherwise d…

(a) After notice and opportunity for a hearing, the Commissioner may suspend or terminate the authority of any fund, or direct or take any action deemed necessary for good cause, to enable a fund to meets its obligations, cover its expected losses, or to liquidate, rehabilitate o…

(a) Prospective new members of the fund shall submit an application for membership to the fund's commissioners on a form acceptable to the Commissioner. The application shall include a copy of the resolution of participation and executed indemnity and trust agreement. The commiss…

(a) The subchapter sets forth the filing requirements and approval procedures for joint liability funds established by State college risk management groups and for such groups established pursuant to N.J.S.A. 18A:64-86 et seq. (b) This subchapter applies to all State college join…

(a) A member of the group must remain a member for the full term of membership, as provided in the group's bylaws, unless earlier terminated by the group for nonpayment of assessments, noncompliance with risk management or underwriting standards, or for other reasons subject to p…

The insolvency or bankruptcy of a member does not relieve the group or any other member of joint and several liability for the payment of any claims incurred by the member during the period of its membership, including, but not limited to, being subject to and liable for suppleme…

(a) A group may not voluntarily dissolve or otherwise cease to do business and distribute its assets to its members, unless and until it satisfies the following requirements: 1. A majority of the group's members must have voted in favor of a resolution to dissolve the group, purs…

(a) Pursuant to the terms of the indemnity and trust agreement, each group shall establish a separate trust fund account in accordance with N.J.A.C. 11:15-7.6(c)10 from which monies shall be disbursed solely for the payment of claims, allocated claim expenses and excess insurance…

Each group shall establish an administrative account for each fund year which shall be utilized for payment of the group's general operating expenses, including, but not limited to, loss prevention activities, data processing services and general legal expenses. A group shall not…

(a) Each participating member of a risk management group shall appropriate and pay to the group its assessments as required by the risk management group. During the first year of operation of a risk management group these contributions shall be paid in two equal installments, the…

(a) Each group shall levy upon its members an additional assessment whenever needed or so ordered by the Commissioner, to supplement the group's claim or loss retention or administrative accounts to assure payment of the group's obligations, including payment of benefits under th…

Should any member of a group fail or refuse to pay as directed its assessment(s) to the group or to pay as directed any supplemental assessment(s), or should the trustees fail to assess funds required to meet the obligations of the group, the chairman of the board of trustees, if…

(a) Whenever the risk management program of a group requires any members of the group to retain individually a specified amount of risk, potential liability, or incurred losses, the participant shall provide for such liability, or incurred losses: 1. As a deductible to be charged…

Prior to any commitment or agreement requiring the expenditure of funds by the risk management group, the custodian of the group's assets shall certify the availability of sufficient unencumbered funds in the account to fully pay all charges or commitments to be accepted. Notes N…

The following words and terms, as used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise. "Actuary" means a person who is a Fellow in good standing of the Casualty Actuarial Society with three years recent experience in loss res…

(a) The free balance of any account maintained by a risk management group, whether for claim or loss retention, administrative, or contingency, shall be invested to obtain the maximum interest return practicable. All investments shall be made in accordance with the group's cash m…

(a) Any monies for a fund year in excess of the amount necessary to fund all obligations for that fund year as certified by an actuary may be declared to be refundable by the group not less than 24 months after the end of the fund year. (b) The group may seek approval from the Co…

(a) All disbursements, payment of claims settlements or other expenditure of funds of the risk management group whether for administrative expenses or for claims purposes must be approved by a majority of the board of trustees, unless approved pursuant to (b) below. (b) To allow …

(a) Consistent with N.J.A.C. 11:15-7.6(a)6, each group providing primary or underlying coverage on a self-insured or commercially insured basis shall secure excess insurance or reinsurance in a form, in an amount and by an insurer, or other entity authorized to provide such cover…

(a) An annual certified report in a form acceptable to the Commissioner shall be prepared by each group, filed with the Department, and made available to each group member on or before December 31 of each year. The report shall include: 1. An annual audited statement of the finan…