N.J. Admin. Code § 11:15-4.9

Current through Register Vol. 57, No. 1, January 6, 2025

Section 11:15-4.9 - Approval of non-members

(a) Prospective new members of the fund shall submit an application for membership to the fund's board of trustees on a form acceptable to the Commissioner. The application shall include a copy of the resolution of participation and executed indemnity and trust agreement. The trustees may approve or disapprove the application for additional members, pursuant to the bylaws of the fund.

(b) Any application approved by the fund shall, within 15 days of approval by the fund, be filed with the Department and shall be accompanied by a revised budget with assessment detail, if otherwise required pursuant to N.J.A.C 11:15-4.4(e), an actuarial statement regarding the adequacy of the member's assessment to cover anticipated losses, and any amendments to the fund's bylaws and risk management program as may be necessary. The fund shall file only the specific changes to the bylaws or risk management program in effect for the current fund year. Where a fund purchases direct insurance, or where an actuary has determined a "per capita" rate for the member's assessment to cover anticipated losses which has been previously filed with the Department, actuarial certification of the adequacy of these same rates for each new member is not required. The Commissioner may nevertheless require actuarial certification of a per capita rate for the new member's assessment to cover anticipated losses if, in his or her opinion, the new member will impose an extraordinary impact on the exposure of the fund. In addition, the fund shall file the following information in the form of Exhibit D in the Appendix incorporated herein by reference with the Department within 15 days after approval of a new member:

1. The name and address of the new member;

2. The effective date of coverage;

3. The name of the new member's risk manager;

4. The name of the new member's trustee;

5. The lines of coverage for which the new member participates;

6. The amount of assessment, if not otherwise provided; and

7. An affirmative statement from the fund that in accepting the new member, an application has been filed, the fund has adhered to its bylaws and risk management program, and the agreement to participate and indemnity and trust agreement have been filed with the fund.

(c) If a non-member is not approved for membership, the fund shall set forth in writing the reasons for disapproval and send the reasons for disapproval to the non-member. The fund shall retain a copy of all disapprovals for five years.

N.J. Admin. Code § 11:15-4.9