N.J. Admin. Code § 11:10-1.8

Current through Register Vol. 56, No. 23, December 2, 2024

Section 11:10-1.8 - General surplus

(a) Every DPO shall accumulate and maintain a minimum general surplus as set forth in this subsection, of which $ 50,000 shall be deposited with the Commissioner pursuant to N.J.A.C. 11:2-32 either within 90 days of the approval of the certificate of authority or by December 31, 2000, whichever is later:

1. For the reporting year ending December 31, 2000, the amount of the minimum general surplus shall be the greater of $ 50,000 or .5 percent of the current annual premium;

2. For the reporting year ending December 31, 2001, the amount of the minimum general surplus shall be the greater of $ 75,000 or .75 percent of the current annual premium;

3. For the reporting year ending December 31, 2002 and thereafter, the amount of the minimum general surplus shall be the greater of $ 100,000 or one percent of the current annual premium; and

4. For a newly-approved DPO, the initial amount of the minimum general surplus shall be calculated pursuant to (a)1 through 3 above based on the calendar year of approval.

(b) The surplus in excess of the deposit set forth in (a) above shall be invested pursuant to 17B:20-1 et seq.

(c) The general surplus shall be maintained over and above its reserves, liabilities and special contingent surplus.

(d) The Commissioner may waive all or a part of the general surplus requirement if the DPO maintains a contract(s) with an insurer, or a hospital medical, dental or health service corporation which is sufficient to assure the performance of its obligations.

N.J. Admin. Code § 11:10-1.8