N.J. Admin. Code § 11:15-5.26

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

Section 11:15-5.26 - Servicing organizations; administrator

(a) No servicing organization or program manager of a fund, or producer appointed by a fund pursuant to 11:15-5.6(e)15, 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 written notice of such interest has been provided to the trustees 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 or program manager of that fund, or the insurance producer appointed by that fund pursuant to 11:15-5.6(e)15, unless written notice of such interest has been provided to the trustees and members.

(c) Each contract with a servicing organization or program manager shall include a clause stating, "Unless the trustees otherwise permit, the servicing organization (or program manager, as applicable) shall handle to their conclusion all claims and other obligations incurred during the contract period."

(d) The trustees 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 trustees may designate an administrator to carry out the policies established by the trustees and to provide day-to-day management of the fund. The minutes of the trustees' meetings shall detail the areas of authority delegated to the administrator.

(f) Any employee, officer or director of an administrator, servicing organization, program manager or insurance producer appointed pursuant to 11:15-5.6(e)15 shall disclose to the trustees any direct or indirect financial interest such employee, officer or director has in any other administrator, servicing organization, program manager or insurance producer.

N.J. Admin. Code § 11:15-5.26