N.J. Admin. Code § 11:15-2.10

Current through Register Vol. 56, No. 11, June 3, 2024

Section 11:15-2.10 - Termination and/or withdrawal of fund members

(a) A member of the fund must 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 prior approval by the Commissioner as reasons for termination. However, such member shall not be deemed terminated for any reason until:

1. After 30 days written notice of the intention to terminate the member has been given by the fund to the member, which notice shall state the reasons for termination and shall be given by registered mail or certified mail, return receipt requested;

2. Like notice shall have been filed with the Department, together with a certified statement that the notice provided for by (a)1 above has been given; and

3. Thirty days have elapsed after the filing required by (a)2 above has been made.

(b) A member of the fund that does not desire to continue as a member after the expiration of its membership term, as provided in the fund's bylaws, must give written notice of its intent to withdraw 90 days before expiration of the term period. A member of the fund that did not approve any amendment to the fund bylaws approved pursuant to 40A:10-43, and desiring to withdraw from the fund pursuant to N.J.S.A. 40A:10-43e, shall provide written notice of its intent to withdraw 90 days prior to its withdrawal. The fund shall immediately notify the Department and the Department of Community Affairs of all members that have given notice of withdrawal from the fund.

(c) A member that has been terminated by or does not continue as a member of the fund shall nevertheless share in any surplus in the appropriate trust accounts for that fund year and shall remain jointly and severally liable for claims incurred by the fund and its members during the period of its membership, including, but not limited to, being subject to and liable for supplemental assessments.

(d) The fund shall immediately notify the Department and the Department of Community Affairs, if termination or withdrawal of a member causes the fund to fail to meet any of the requirements of 40A:10-36 et seq. or this subchapter. Within 15 days of such notice, the fund shall advise the Department and the Department of Community Affairs of its plan to bring the fund into compliance.

N.J. Admin. Code § 11:15-2.10

Amended by R.1991 d.16, effective 1/7/1991.
See: 22 New Jersey Register 16(a), 23 New Jersey Register 112(a).
Additional reasons for membership termination.
Amended by R.1995 d.408, effective 8/7/1995.
See: 26 New Jersey Register 2725(a), 26 New Jersey Register 3592(a), 27 New Jersey Register 2938(a).
In (a) reasons for termination must be included in notice; in (c) terminating member continues to share in refund from trust accounts for fund year; deleted (e).
Amended by R.1996 d.534, effective 11/18/1996.
See: 28 New Jersey Register 4027(a), 28 New Jersey Register 4877(a).