N.J. Admin. Code § 11:15-5.8

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

Section 11:15-5.8 - Suspension, termination, assumption of control, or other action by Commissioner

(a) After notice and opportunity for a hearing, the Commissioner may suspend or terminate the authority of any joint insurance 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 an adverse effect upon the ability of the fund to pay expected losses;

2. Fails to timely pay any fee or assessment;

3. Fails to comply with any of the provisions of N.J.S.A. 18A:18B-1 et seq. or this subchapter, or with any lawful order of the Commissioner within the time prescribed; or

4. Fails to follow its approved bylaws or risk management program.

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

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

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

3. The fund, its trustees, administrator, servicing organization or agents have 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 § 11:15-5.8