N.J. Admin. Code § 11:15-7.12

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

Section 11:15-7.12 - Voluntary dissolution of a group

(a) A group may not voluntarily dissolve or otherwise cease to do business and distribute its assets to its members, unless and until it satisfies the following requirements:

1. A majority of the group's members must have voted in favor of a resolution to dissolve the group, pursuant to a written plan adopted pursuant to the procedures set forth in the group's bylaws, at a meeting duly called for such purposes;

2. The plan of dissolution must provide for the payment of all unpaid losses of the group and its members, including all incurred but not reported losses, as certified by an actuary, before any assets of the group or the trust fund accounts may be used for any other purpose;

3. The plan of dissolution shall contain a statement of the group's current financial condition computed both on a statutory basis and according to generally accepted accounting principles as attested to by an independent certified public accountant; and

4. The plan of dissolution, and such other information as may be required, must be filed with and approved in writing by the Commissioner. The plan shall be filed with the Commissioner not later than 90 days prior to the proposed effective date of dissolution.

N.J. Admin. Code § 11:15-7.12