N.J. Admin. Code § 11:15-2.26

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

Section 11:15-2.26 - Servicing organizations; administrator

(a) No servicing organization of a fund, or producer that may be appointed pursuant to 11:15-2.6(c)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 administrator, unless notice of such interest has been provided to the fund commissioners and members.

(b) No administrator of a fund, or its employees, officers or directors shall be an employee, officer or director of, or have either a direct or indirect financial interest in, a servicing organization of that fund, or the insurance producer that may be appointed by that fund pursuant to 11:15-2.6(c)10, unless notice of such interest has been provided to the fund commissioners and members.

(c) Each service contract shall include a clause stating, "Unless the fund commissioners otherwise permit, the servicing organization shall handle to their conclusion all claims and other obligations incurred during the contract period."

(d) The fund commissioners shall notify the Department and the Department of Community Affairs within 10 days of any determination to terminate or nonrenew any agreement with a servicing organization. The notification shall include a detailed statement that sets forth the manner and method by which claims handling and other obligations performed by the servicing organization will be provided or a statement that sets forth the reasons why the fund commissioners believe that the particular service is no longer necessary.

(e) The fund commissioners or the executive committee, if any, may designate an administrator or lead agency to carry out the policies established by the commissioners or the executive committee, if any, and to provide day-to-day management of the fund. The minutes of the commissioners or executive committee meetings, if any, shall detail the areas of authority delegated to the administrator or lead agency.

(f) Any employee, officer or director of an administrator, servicing organization or insurance producer that may be appointed pursuant to 11:15-2.6(c)10 shall disclose to the fund commissioners or executive committee, as applicable, any direct or indirect financial interest such employee, officer or director has in any other administrator, servicing organization or insurance producer.

N.J. Admin. Code § 11:15-2.26

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) and (b) deleted Commissioner's prior approval in favor of notification of the Commissioner; renumbered former (d) as (e); and added new (d) and (f).