N.J. Admin. Code § 11:15-7.15

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

Section 11:15-7.15 - Assessments

(a) Each participating member of a risk management group shall appropriate and pay to the group its assessments as required by the risk management group. During the first year of operation of a risk management group these contributions shall be paid in two equal installments, the first installment payable no later than July 15 and the second installment payable no later than November 15 or in any other manner that the Commissioner in his or her discretion may direct. Subsequent years' assessments may be paid in such installments as shall be provided in the group's bylaws, provided, however, that the full assessment shall be paid by each member no later than February 1, or in such other manner as provided in the group's bylaws as approved by the Commissioner.

(b) Each member's annual assessment shall consist of amounts allocated for the administrative account, contingency trust fund account where appropriate, plus a specific assessment to establish and/or replenish the claim or loss retention trust fund account for each type of coverage provided by the group and in which such member participates.

(c) The total amount of each member's annual assessments to the group shall be certified by the trustees to the governing body of each participant at least one month prior to the beginning of the next fiscal year. As a condition of continued participation in the group, each member shall pay the amount certified at such time and in such manner provided in the group's bylaws.

(d) Unless otherwise approved by the Commissioner, the annual assessment of each group member providing for the self-insurance of workers' compensation and employers' liability coverages shall be based upon the Experience Rating Plan provided for in the New Jersey Workers' Compensation and Employers' Liability Insurance Manual on file with the Commissioner. The Commissioner may withdraw his or her approval of any assessment if he or she finds that such assessment is unreasonable or inadequate for the members of the group to which it applies. In taking any action under this section, the Commissioner may require that the trustees, administrator, any servicing organization or agent of the group provide such information as he or she deems necessary.

(e) Nothing contained in this section shall preclude the assessment and payment of supplemental assessments as provided in 11:15-7.1 6.

N.J. Admin. Code § 11:15-7.15