N.J. Admin. Code § 11:15-6.8

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

Section 11:15-6.8 - Revocation of approval

(a) After notice and opportunity for a hearing, the Commissioner may suspend or terminate the authority of any fund, or direct or take any action deemed necessary for good cause, to enable a fund to meets its obligations, cover its expected losses, or to liquidate, rehabilitate or otherwise modify its affairs if a fund:

1. Is found to be insolvent or has experienced a deterioration in financial condition to the extent that it causes or may cause an adverse effect upon the ability of the fund to pay expected losses;

2. Fails to timely pay any fee or assessment;

3. Fails to pay any claim within 30 days after a final judgment is rendered against the fund or the fund's obligation for such claim otherwise becomes final;

4. Fails to comply with any of the provisions of 17:49A-1 et seq. or this subchapter, or with any lawful order of the Commissioner within the time prescribed; or

5. Fails to follow its approved bylaws or risk management program.

(b) In addition, the Commissioner may suspend or terminate a fund's authority if, after notice and opportunity for hearing, he or she finds that:

1. There was a material misrepresentation in any of the information supplied to the Commissioner;

2. The fund or any of its commissioners, administrator, servicing organization or agents has otherwise shown itself to be untrustworthy or incompetent;

3. The fund, its commissioners, administrator, servicing organization or agents has misappropriated, converted, illegally withheld, or refused to pay over upon proper demand any monies that belong to a member, an employee of a member, or a person otherwise entitled thereto.

N.J. Admin. Code § 11:15-6.8