N.J. Admin. Code § 11:15-1.8

Current through Register Vol. 56, No. 21, November 4, 2024

Section 11:15-1.8 - Group membership; termination; liability

(a) An employer joining a group after the group has been issued a certificate of approval shall:

1. Submit an application for membership to the trustees or the administrator; and

2. Enter into the indemnity and trust agreement. Membership shall take effect no earlier than each member's date of approval. The application for membership and its approval shall be maintained as permanent records of the group and copies shall be filed with the Commissioner.

(b) Individual members of a group shall be subject to cancellation by the group pursuant to the provisions of the indemnity and trust agreement or operating rules of the group. In addition, individual members may elect to terminate their participation in the group. The group shall notify the terminating member, all other members, and the Commissioner, by registered or certified mail, of the termination or cancellation of a member at least 10 days prior to the effective date and shall maintain coverage of each cancelled or terminated member for 30 days after such notice, unless, after such notice, the group is notified sooner that the cancelled or terminated member has procured workers' compensation insurance, has become an approved self-insurer, or has become a member of another approved group.

(c) The group shall pay all workers' compensation benefits for which each member incurs liability during its period of membership. A member who elects to terminate its membership or is cancelled by a group remains jointly and severally liable for workers' compensation obligations of the group and its members which were incurred during the cancelled or terminated member's period of membership and shall be subject to and liable for supplemental assessments appropriate to its period of membership.

(d) A group member is not relieved of its workers' compensation liabilities incurred during its period of membership except through payment of required workers' compensation benefits by the group or the member.

(e) The insolvency or bankruptcy of a member does not relieve the group or any other member of liability for the payment of any workers' compensation benefits incurred during the insolvent or bankrupt member's period of membership.

N.J. Admin. Code § 11:15-1.8