N.J. Admin. Code § 11:15-3.26

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

Section 11:15-3.26 - Servicing organizations; administrator

(a) No servicing organization or program manager of a fund, or producer appointed by a fund pursuant to 11:15-3.6(e)15, 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 written 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 or program manager of that fund, or the insurance producer appointed by that fund pursuant to 11:15-3.6(e)15, unless written notice of such interest has been provided to the fund commissioners and members.

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

(d) The fund commissioners shall notify the Department 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.

(f) Any employee, officer or director of an administrator, servicing organization, program manager or insurance producer appointed pursuant to 11:15-3.6(e)15 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, program manager or insurance producer.

N.J. Admin. Code § 11:15-3.26

Amended by R.1996 d.535, effective 11/18/1996.
See: 28 New Jersey Register 4036(a), 28 New Jersey Register 4885(a).