N.J. Admin. Code § 11:15-2.8

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

Section 11:15-2.8 - Revocation of approval

(a) After notice and opportunity for a hearing, the Commissioner may suspend or terminate the authority of any fund, or direct or take any action deemed necessary for good cause, to enable a fund to meet its obligations, cover its expected losses, or to liquidate, rehabilitate or otherwise modify its affairs if a fund:

1. Is found to be insolvent or has experienced a deterioration in financial condition to the extent that it causes or may cause an adverse affect upon the ability of the fund to pay expected losses;

2. Fails to pay any fee or assessment;

3. Fails to pay any claim within 30 days after a final judgment is rendered against the fund or the fund's obligation for such claim otherwise becomes final;

4. Fails to comply with any of the provisions of 40A:10-36 et seq. or this subchapter, or with any lawful order of the Commissioner with the time prescribed; or

5. Fails to follow its approved bylaws or plan of risk management.

(b) In addition, the Commissioner may suspend or terminate a fund's authority if, after notice and opportunity for hearing, he or she finds that:

1. There was a material misrepresentation in any of the information supplied to the Commissioner or the Commissioner of the Department of Community Affairs;

2. The fund, or any of its commissioners, administrator, servicing organization or agents has otherwise shown itself to be untrustworthy or incompetent; or

3. The fund, its commissioners, administrator, servicing organization or agents has misappropriated, converted, illegally withheld, or refused to pay over upon proper demand any monies that belong to a member, an employee of a member, or a person otherwise entitled thereto.

N.J. Admin. Code § 11:15-2.8

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).
Expanded Commissioners' powers in (a) and including servicing organizations and their agents in (b).
Amended by R.1996 d.534, effective 11/18/1996.
See: 28 New Jersey Register 4027(a), 28 New Jersey Register 4877(a).