N.J. Admin. Code § 11:15-2.3

Current through Register Vol. 56, No. 19, October 7, 2024

Section 11:15-2.3 - Agreement to join joint insurance fund; duration

(a) Pursuant to 40A:10-36, the governing body of any local unit of government may by resolution agree to join together with any other local unit or units to establish a joint insurance fund as defined in this subchapter. The resolution shall provide for execution of a written agreement specifically providing for acceptance of the fund's bylaws as approved and adopted pursuant to 40A:10-39. The agreement shall specify the extent of the local unit's participation in the fund with respect to the types of insurance coverage to be provided by the fund and shall include the duration of fund membership, which in no event shall exceed three years, pursuant to 40A:11-15(6). The agreement shall also specify that the fund members have never defaulted on claims if self-insured and have not been cancelled for non-payment of insurance premiums for a period of at least two years prior to application.

1. Pursuant to 40A:10-36.3 et seq., non-profit housing entities as defined by 40A:10-36.3 may establish a joint insurance fund comprised only of other non-profit housing entities. Any such joint insurance fund so established shall comply with the provisions of N.J.A.C. 11:15-6.

2. Non-profit housing entities, as defined by 40A:10-36.3, may join a joint insurance fund comprised either of other non-profit housing entities, housing authorities, or a combination thereof. No such joint insurance fund shall, however, have as its members local units that are municipalities, counties, boards of education, or fire districts. Any joint insurance fund comprised solely of non-profit housing entities shall comply with the provisions of N.J.A.C. 11:15-6.

3. Notwithstanding any provision of law to the contrary, a joint insurance fund established pursuant to 40A:10-36.3 that includes non-profit housing entities as members shall not join together with other local units as otherwise provided in 40A:10-36.3 for the purpose of providing contributory or non-contributory group health insurance or group term insurance, or both, to employees or their dependents or both.

4. Notwithstanding any provision of law to the contrary, a joint insurance fund established pursuant to 40A:10-36.3 that includes non-profit housing entities as members may participate in joint insurance funds:

i. Where the membership is exclusively comprised of other joint insurance funds and whose purpose is to provide excess levels of coverage;

ii. Where the membership is exclusively comprised of other joint insurance funds and whose purpose is to accept the transfer of residual claims liabilities; or

iii. Whose purpose is to provide environmental impairment liability insurance.

5. A joint insurance fund that has as its members non-profit housing entities shall operate pursuant to the provisions of 40A:10-36 et seq.

(b) A joint insurance fund formed pursuant to 40A:10-36 et seq. and this subchapter shall have the power to insure, contract or provide for any insurable interest of the member solely for the purposes set forth in 11:15-2.1(a).

(c) Members may renew their participation by the execution of a new agreement to rejoin the joint insurance fund. If the existing resolution did not specify the duration of fund membership, the member shall affirm the new membership agreement by resolution. If the existing resolution specified the duration for fund membership, the member shall either amend the existing resolution, or adopt a new resolution, as appropriate, to authorize the continued participation in the joint insurance fund prior to the execution of the new membership agreement. In lieu of filing with the Department and the Department of Community Affairs copies of the new resolution and new indemnity and trust agreement referred to in 11:15-2.6(b)10 for each member's renewal of membership, the fund shall file a notice with the Department which sets forth the members that have renewed membership and the respective durations of such membership, as well as the members that have not rejoined the fund.

(d) For purposes of 40A:10-52, the governing body of any municipality and the board of education of the local school district operating within that municipality may, subject to 40A:10-52, by resolution, agree to join together for purposes of insuring coverages as set forth in that statute, provided that the district is not part of a limited purpose regional school district, an all purpose regional school district, or a consolidated school district. All purpose regional school districts, consolidated school districts, limited purpose regional school districts, the board of education of local school districts which are part of a limited purpose regional school district as described above, and county vocational school districts and the board of education of local school districts within a county vocational school district, may otherwise agree to join together with one or more constituent municipalities for the purposes of insuring coverages as described in and in accordance with 40A:10-53 to 57, as applicable. The board of education of a local or regional school district, consolidated school district or county vocational school district may not otherwise join with any municipality to form a fund pursuant to 40A:10-36 et seq. for the purpose of insuring coverages of the kinds set forth in 40A:10-52 to 57, except pursuant to this subsection. Notwithstanding any other provision to the contrary, no board of education, except the board of education of county vocational school districts, may join together with a municipality or other local unit for the purpose of providing contributory or non-contributory group health insurance or term life insurance, or both, to employees or their dependents, or both, as otherwise permitted pursuant to 40A:10-36 et seq.

N.J. Admin. Code § 11:15-2.3

Amended by R.1991 d.16, effective 1/7/1991.
See: 22 N.J.R. 16(a), 23 N.J.R. 112(a).
Changes reflect current practice and changes in applicable statutes.
Amended by R.1995 d.408, effective 8/7/1995.
See: 26 N.J.R. 2725(a), 26 N.J.R. 3592(a), 27 N.J.R. 2938(a).
Amended existing text and redesignated section as (a) and (b); and added (c).
Amended by R.1999 d.350, effective 10/18/1999.
See: 31 N.J.R. 2125(b), 31 N.J.R. 3091(a).
In (a), deleted references to ordinances throughout.
Amended by R. 2005 d. 112, effective 4/4/2005.
See: 36 N.J.R. 4625(a), 37 N.J.R. 1075(a).
Added a new (b); recodified former (b) as (c) and deleted "ordinance or" preceding "resolution" throughout; recodified former (c) as (d) and substituted "N.J.S.A. 40A:10-52, by resolution, agree to join together" for "N.J.S.A. 40A:10-52, by ordinance or resolution, as the case may be, agree to join together" in the first sentence.
Amended by R.2005 d.263, effective 8/15/2005.
See: 37 N.J.R. 1121(a), 37 N.J.R. 3043(a). In (a), added 1.-5.