N.J. Admin. Code § 11:15-1.9

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

Section 11:15-1.9 - Voluntary dissolution of 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 of dissolution at a meeting duly called for such purposes;

2. The plan of dissolution must provide for the payment of all incurred expenses and losses of the group and its members, including all incurred but not reported losses and associated expenses, before any assets of the group may be used for any other purposes;

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

4. The plan of dissolution, and such other information as may be required by the Commissioner, shall be filed with and approved by the Commissioner.

(b) If such a group self-insurance plan is terminated, the securities or surety bond on deposit with the Commissioner shall remain in the custody of the Commissioner for a period of at least 26 months. At the expiration of such time or such further period as the Commissioner may deem proper and necessary, he or she may accept, in lieu thereof, and for the additional purpose of securing such further and future contingent liability as may arise from prior injuries to workers and be incurred by reason of any change in the condition of such workers which warrant awards for additional compensation, a policy of insurance furnished by the group self-insurer, its successor, assigns, or others carrying on or liquidating such self-insurance group.

N.J. Admin. Code § 11:15-1.9

Amended by R.2005 d.112, effective 4/4/2005.
See: 36 New Jersey Register 4625(a), 37 New Jersey Register 1075(a).
In (b), inserted "or she" preceding "may accept" in the second sentence.