N.J. Admin. Code § 11:15-6.25

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

Section 11:15-6.25 - Servicing organizations; administrator

(a) No servicing organization of a fund or producer appointed pursuant to N.J.A.C. 11:15-6.6(d)10, 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 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 of that fund, or an insurance producer appointed by that fund pursuant to N.J.A.C. 11:15-6.6(d)10, unless notice of such interest has been provided to the fund commissioners and members.

(c) Each contract with a servicing organization providing claims adjustment and administration services shall include a clause stating: "Unless the fund commissioners otherwise permit, the servicing organization 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 to carry out the policies established by the fund commissioners and to provide day-to-day management of the fund. The minutes of the commissioners' or executive committee meetings shall detail the areas of authority delegated to the administrator.

(f) Any employee, officer or director of an administrator, servicing organization, or producer appointed pursuant to N.J.A.C. 11:15-6.6(d)10 shall disclose to the fund commissioners or executive committee any direct or indirect financial interest such employee, officer or director has in any other administrator, servicing organization or insurance producer.

N.J. Admin. Code § 11:15-6.25