N.J. Admin. Code § 11:15-6.10

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

Section 11:15-6.10 - Termination and/or withdrawal of fund members

(a) A member of the fund shall remain a member for the full term of membership, as provided in the fund's bylaws, unless earlier terminated by the fund 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. After 30 days written notice of the intention to terminate the member has been given by the fund 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 fund that does not desire to continue as a member upon the expiration of its membership term, as provided in the fund's bylaws, shall give written notice of its intent to withdraw 90 days before expiration of the term period. The fund shall immediately notify the Department of all members that have given notice of withdrawal from the fund.

(c) A member that has been terminated by or does not continue as a member of the fund 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 fund and its members during the period of its membership, including, but not limited to, being subject to and liable for supplemental assessments.

(d) The fund shall immediately notify the Department if termination or withdrawal of a member causes the fund to fail to meet any of the requirements of 17:49A-1 et seq. or this subchapter. Within 15 days of such notice, the fund shall advise the Department of its plan to bring the fund into compliance.

N.J. Admin. Code § 11:15-6.10