N.J. Admin. Code § 11:15-7.10

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

Section 11:15-7.10 - Termination and/or withdrawal of group members

(a) A member of the group must remain a member for the full term of membership, as provided in the group's bylaws, unless earlier terminated by the group for nonpayment of assessments, noncompliance with risk management or underwriting standards, or for other reasons subject to prior approval by the Commissioner as causes for expulsion. However, such member shall not be deemed terminated for any reason until:

1. Thirty days after written notice of the intention to terminate the member has been given by the group to the member, which notice shall state the reasons for termination and shall be given by registered mail or certified mail, return receipt requested;

2. Like notice shall have been filed with the Department, together with a certified statement that the notice provided for by (a)1 above has been given; and

3. Thirty days have elapsed after the filing required by (a)2 above has been made.

(b) A member of the group that does not desire to continue as a member upon the expiration of its membership term, as provided in the group's bylaws, must give written notice of its intent to withdraw 90 days before expiration of the term period.

(c) A member that has been terminated by or does not continue as a member of the group shall nevertheless share in any surplus in the appropriate trust accounts for that fund year and shall remain jointly and severally liable for claims incurred by the group and its members during the period of its membership, including, but not limited to, being subject to and liable for supplemental assessments.

(d) The group shall immediately notify the Department if termination or withdrawal of a member causes the group to fail to meet any of the requirements of N.J.S.A. 18A:64-86 et seq. or this subchapter. Within 15 days of such notice, the group shall advise the Department of its plan to bring the group into compliance.

N.J. Admin. Code § 11:15-7.10