N.J. Admin. Code § 11:15-5.3

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

Section 11:15-5.3 - Agreement to join joint insurance fund; duration

(a) Any two or more boards of education may form and become members of a school board joint insurance fund formed for the sole purpose of providing contributory or non-contributory group health and term life benefits to the members' employees and their dependents. A school board may take this action by resolution of the board.

(b) A joint insurance fund formed pursuant to 18A:18B-1 et seq. and this subchapter shall have the power to insure, contract or provide for any insurable interest of the member solely for benefits pursuant to contributory or non-contributory group health insurance or group term life insurance, or both, for employees or their dependents, or both, through self-insurance, the purchase of commercial insurance or reinsurance, or any combination thereof. The maximum risk to be retained for group term life insurance by a joint insurance fund on a self insured basis shall not exceed a face amount of $ 5,000 per covered employee or dependent or such greater amount as approved by the Commissioners of Banking and Insurance and Education. Notwithstanding any other provision of law to the contrary, the board or joint insurance fund shall be subject to the surcharge levied pursuant to section 3 of P.L. 1993, c.8 (52:14-17.3 8c) for claims paid within the retained amount. For any claims paid in excess of the retained amount, the surcharge shall be paid by the entity insuring the excess amount;

(c) The resolution shall provide for execution of a written agreement specifically conditioning membership on acceptance of the fund's bylaws as approved and adopted pursuant to 18A:18B-1 et seq. The agreement shall specify the extent of the member'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, if applicable. The agreement shall also specify that the fund members have not been cancelled for non-payment of insurance premiums for a period of at least two years prior to application. Members may renew their participation by the execution of a new agreement to rejoin the joint insurance fund. In lieu of filing copies of the new agreement and new indemnity and trust agreement referred to in 11:15-5.6(c) 6 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.

N.J. Admin. Code § 11:15-5.3

Amended by R.2005 d.112, effective April 2005.
See: 36 New Jersey Register 4625(a), 37 New Jersey Register 1075(a).
Added a new (b); recodified former (b) as (c).