N.J. Admin. Code § 11:15-6.4
Current through Register Vol. 56, No. 21, November 4, 2024
Section 11:15-6.4 - General requirements(a) All monies, assessments, funds and other assets of a joint insurance fund shall be under the exclusive control of its insurance fund commission.(b) Each joint insurance fund shall adopt a resolution designating a public depository or depositories for its monies. Such resolution shall also designate a person to be custodian of funds for the joint insurance fund and shall authorize the custodian to invest the temporarily free balances of any claim/trust or administrative accounts periodically as authorized by this subchapter. The custodian shall report to the fund commissioners at least quarterly on investment and interest income.(c) The fund commissioners shall annually prepare in November of each year, the proposed budget for the fund's subsequent fiscal year. The budget shall identify the proposed items and amounts of expenditure for its operations in the aggregate and allocated by member; the anticipated amounts and sources of assessments and other income to be received during the fiscal year; and the status of the self-insurance or loss retention trust accounts maintained by the joint insurance fund. The budget shall be prepared on a basis that does not recognize investment income or discounting of claim reserves, but recognizes all anticipated or forecasted losses and administrative expenses associated with that fiscal year. 1. A copy of the fund's proposed budget or any amendments thereto shall be made available to each member of the joint insurance fund at least two weeks prior to the time scheduled for its adoption. No budget or amendment shall be adopted except in accordance with the procedures for such action set forth in the fund's bylaws as approved by the Commissioner, which procedures shall provide all members of the joint insurance fund the opportunity to present comments or objections.2. Not later than December 31 of each year, the fund commissioners shall adopt by majority vote the budget for the fund's operations for the subsequent fiscal year.3. A copy of each adopted budget shall be filed with the board or owner, as appropriate, of each participating member and the Commissioner within 30 days of its adoption, including a certification by an actuary that the budget is actuarially sound with respect to funding for the claim or loss retention fund accounts.4. An adopted budget may be amended by majority vote of the membership of the joint insurance fund.5. A copy of any amendment to a fund budget shall be filed quarterly with the board or owner of each participating member.6. A copy of any amendment to a fund budget shall be filed with the Commissioner within 30 days of adoption of any budget amendment which either singly or cumulatively with other adopted budget amendments changes the total budget five percent from the original budget or the latest filed amended budget.(d) All books, records, files, documents and equipment of the joint insurance fund are the property of the fund and, except as provided at 11:15-6.2 1(e), shall be retained by the fund administrator or fund secretary, if any, at the discretion of the fund commissioners. 1. All claims information for a particular fund year and all financial information shall be retained for a period not less than the longer of either: i. Seven years from the date of their creation; orii. Until the completion and filing of the next financial condition examination of the fund by the Commissioner following the closing of all reported claims.(e) Each fund shall maintain written minutes of its meetings and shall file such approved, ratified and adopted minutes with the Commissioner within 30 days after such minutes are approved, ratified and adopted.(f) A joint insurance fund shall provide its members with periodic reports covering the activities and status of the fund for the reporting period. Such reports shall be made at least quarterly and may be made more frequently at the discretion of the fund commissioners and shall include, but not be limited to, the minutes, the fund administrator's report and a summation of fund activity, including comments on previously reported claims and newly reported claims, and any other information required by the fund commissioners. The Department may require that such reports be submitted to the Department if it is deemed necessary to ensure compliance with these reporting requirements. Such reports shall also be made available to the Department for review during any examination of the joint insurance fund.(g) All officers, employees and agents of the joint insurance fund, including the administrator and servicing organization of the fund, on the final day of their contract or employment shall surrender and deliver to their successors all accounts, funds, property, records, books and any other material relating to their contract or employment. N.J. Admin. Code § 11:15-6.4