reglab/statecodes huggingface dataset:
2023 New Jersey Revised Statutes › Title 17B - Insurance › Section 17B:32-68 - Denial of claims

17B:32-68. Denial of claims
38. a. When a claim is denied in whole or in part by the liquidator, written notice of the determination shall be given to the claimant or his attorney by first class mail at the address shown in the proof of claim. Within 60 days from the mailing of the notice, the claimant may file his objections with the liquidator. If no such filing is made, the claimant may not further object to the determination.
b. Whenever objections are filed with the liquidator and the liquidator does not alter his denial of the claim as a result of the objections, the liquidator shall ask the court for a hearing as soon as practicable and give notice of the hearing by first class mail to the claimant or his attorney and to any other persons directly affected, not less than 10 nor more than 30 days before the date of the hearing. The matter may be heard by the court or by a court-appointed referee who shall submit findings of fact along with his recommendation.
L.1992,c.65,s.38.
2023 New Jersey Revised Statutes › Title 17B - Insurance › Section 17B:32-69 - Proving, filing of claim of subrogee

17B:32-69. Proving, filing of claim of subrogee
39. Whenever a creditor, whose claim against an insurer is secured, in whole or in part, by the undertaking of another person, fails to prove and file that claim, the other person may do so in the creditor's name, and shall be subrogated to the rights of the creditor, whether the claim has been filed by the creditor or by the other person in the creditor's name, to the extent that he discharges the undertaking. In the absence of an agreement with the creditor to the contrary, the other person shall not be entitled to any distribution, however, until the amount paid to the creditor on the undertaking plus the distributions paid on the claim from the insurer's estate to the creditor equals the amount of the entire claim of the creditor. Any excess received by the creditor shall be held by him in trust for that other person. The term "other person," as used in this section, shall not apply to a guaranty association or foreign guaranty association.
L.1992,c.65,s.39.
2023 New Jersey Revised Statutes › Title 17B - Insurance › Section 17B:32-70 - Determination of value of security

17B:32-70. Determination of value of security
40. a. The value of any security held by a secured creditor shall be determined in one of the following ways, as the court may direct:
(1) By converting the same into money according to the terms of the agreement pursuant to which the security was delivered to the creditor; or
(2) By agreement, arbitration, compromise or litigation between the creditor and the liquidator.
b. The determination shall be under the supervision and control of the court with due regard for the recommendation of the liquidator. The amount so determined shall be credited upon the secured claim, and any deficiency shall be treated as an unsecured claim. If the claimant shall surrender his security to the liquidator, the entire claim shall be allowed as if unsecured.
L.1992,c.65,s.40.
2023 New Jersey Revised Statutes › Title 17B - Insurance › Section 17B:32-72 - Review of claims

17B:32-72. Review of claims
42. a. The liquidator shall review all claims duly filed in the liquidation and shall make such further investigation as he shall deem necessary. He may compound, compromise or in any other manner negotiate the amount for which claims will be recommended to the court except where the liquidator is required by law to accept claims as settled by any person or organization, including any guaranty association or foreign guaranty association. Unresolved disputes shall be determined under section 38 of this act. As soon as practicable, he shall present to the court a report of the claims against the insurer with his recommendations. The report shall include the name and address of each claimant and the amount of the claim finally recommended, if any. If the insurer has issued annuities or life insurance policies, the liquidator shall report the persons to whom, according to the records of the insurer, amounts are owed as cash surrender values or other investment value and the amounts owed.
b. The court may approve, disapprove or modify the report on claims by the liquidator. Reports that are not modified by the court within a period of 60 days following submission by the liquidator shall be treated by the liquidator as allowed claims, subject thereafter to later modification or to rulings made by the court pursuant to section 38 of this act. No claim under a policy of insurance shall be allowed for an amount in excess of the applicable policy limits.
L.1992,c.65,s.42.
2023 New Jersey Revised Statutes › Title 17B - Insurance › Section 17B:32-73 - Payment of distributions

17B:32-73. Payment of distributions
43. Under the direction of the court, the liquidator shall pay distributions in a manner that will assure the proper recognition of priorities and a reasonable balance between the expeditious completion of the liquidation and the protection of unliquidated and undetermined claims, including third party claims. Distribution of assets in kind may be made at valuations set by agreement between the liquidator and the creditor and approved by the court.
L.1992,c.65,s.43.
2023 New Jersey Revised Statutes › Title 17B - Insurance › Section 17B:32-74 - Distribution of unclaimed funds

17B:32-74. Distribution of unclaimed funds
44. Distribution of all unclaimed funds subject to distribution remaining in the liquidator's hands when he is ready to apply to the court for discharge, including the amount distributable to any creditor, shareholder, member or other person who is unknown or cannot be found, shall be made in accordance with the "Uniform Unclaimed Property Act (1981)," R.S. 46:30B-1 et seq.
L.1992,c.65,s.44.
2023 New Jersey Revised Statutes › Title 17B - Insurance › Section 17B:32-75 - Application for discharge

17B:32-75. Application for discharge
45. a. When all assets justifying the expense of collection and distribution have been collected and distributed under this act, the liquidator shall apply to the court for discharge. The court may grant the discharge and make any other orders, including an order to transfer any remaining funds that are uneconomic to distribute, as may be deemed appropriate.
b. Any other person may apply to the court at any time for an order under subsection a. of this section. If the application is denied, the applicant shall pay the costs and expenses of the liquidator in resisting the application, including reasonable attorney's fees.
L.1992,c.65,s.45.
2023 New Jersey Revised Statutes › Title 17B - Insurance › Section 17B:32-76 - Petition for reopening of proceedings

17B:32-76. Petition for reopening of proceedings
46. After the liquidation proceeding has been terminated and the liquidator discharged, the commissioner or other interested party may at any time petition the Superior Court to reopen the proceedings for good cause, including the discovery of additional assets. If the court is satisfied that there is justification for reopening, it shall so order.
L.1992,c.65,s.46.
2023 New Jersey Revised Statutes › Title 17B - Insurance › Section 17B:32-77 - Retaining, destruction of records

17B:32-77. Retaining, destruction of records
47. Whenever it shall appear to the commissioner that the records of any insurer in the process of liquidation or completely liquidated are no longer useful, he may recommend to the court and the court shall direct what records should be retained for future reference and what should be destroyed.
L.1992,c.65,s.47.
2023 New Jersey Revised Statutes › Title 17B - Insurance › Section 17B:32-78 - Audits of receiverships

17B:32-78. Audits of receiverships
48. The Superior Court may, as it deems appropriate, cause audits to be made of the books of the commissioner relating to any receivership established under this act, and a report of each audit shall be filed with the commissioner and with the court. The books, records and other documents of the receivership shall be made available to the auditor at any time without notice. The expense of each audit shall be considered a cost of administration of the receivership.
L.1992,c.65,s.48.
2023 New Jersey Revised Statutes › Title 17B - Insurance › Section 17B:32-79 - Grounds for appointment of conservator

17B:32-79. Grounds for appointment of conservator
49. a. If a domiciliary liquidator has not been appointed, the commissioner may apply to the Superior Court by verified petition for an order directing him to act as conservator to conserve the property of an alien insurer not domiciled in this state or a foreign insurer on any one or more of the following grounds:
(1) Any of the grounds in section 11 of this act;
(2) That any of its property has been sequestered by official action in its domiciliary state, or in any other state;
(3) That enough of its property has been sequestered in a foreign country to give reasonable cause to fear that the insurer is or may become insolvent;
(4) (a) That its certificate of authority to do business in this State has been revoked or that none was ever issued; and
(b) That there are residents of this State with outstanding claims or outstanding policies.
b. When an order is sought under subsection a. of this section, the court shall give the insurer notice and time to respond thereto as is reasonable under the circumstances.
c. The court may issue the order in whatever terms it shall deem appropriate. The filing or recording of the order with the clerk of the Superior Court or the recorder of deeds of the county in which the principal business of the insurer is located, shall impart the same notice as a deed, bill of sale or other evidence of title duly filed or recorded with that recorder of deeds would have imparted.
d. The conservator may at any time petition for and the court may grant an order under section 50 of this act to liquidate assets of a foreign or alien insurer under conservation, or, if appropriate, for an order under section 52 of this act, to be appointed ancillary receiver.
e. The conservator may at any time petition the court for an order terminating conservation of an insurer. If the court finds that the conservation is no longer necessary, it shall order that the insurer be restored to possession of its property and the control of its business. The court may also make such finding and issue such order at any time upon motion of any interested party, but if such motion is denied all costs shall be assessed against that party.
L.1992,c.65,s.49.
2023 New Jersey Revised Statutes › Title 17B - Insurance › Section 17B:32-80 - Grounds for liquidation of assets of insurer

17B:32-80. Grounds for liquidation of assets of insurer
50. a. If no domiciliary receiver has been appointed, the commissioner may apply to the Superior Court by verified petition for an order directing him to liquidate the assets found in this State of a foreign insurer or an alien insurer not domiciled in this State, on any of the following grounds:
(1) Any of the grounds in section 11 or 16 of this act; or
(2) Any of the grounds specified in paragraphs (2) through (4) of subsection a. of section 49 of this act.
b. When an order is sought under subsection a. of this section, the court shall give the insurer notice and time to respond thereto as is reasonable under the circumstances.
c. If it shall appear to the court that the best interests of creditors, policyholders and the public require, the court may issue an order to liquidate in whatever terms it shall deem appropriate. The filing or recording of the order with the clerk of the Superior Court or the recorder of deeds of the county in which the principal business of the insurer is located or the county in which its principal office or place of business is located, shall impart the same notice as a deed, bill of sale or other evidence of title duly filed or recorded with that recorder of deeds would have imparted.
d. If a domiciliary liquidator is appointed in a reciprocal state while a liquidation is proceeding under this section, the liquidator under this section shall thereafter act as ancillary receiver under section 52 of this act. If a domiciliary liquidator is appointed in a nonreciprocal state while a liquidation is proceeding under this section, the liquidator under this section may petition the court for permission to act as ancillary receiver under section 52 of this act.
e. On the same grounds as are specified in subsection a. of this section, the commissioner may petition any appropriate federal district court to be appointed receiver to liquidate that portion of the insurer's assets and business over which the court will exercise jurisdiction, or any lesser part thereof that the commissioner deems desirable for the protection of the policyholders and creditors in this State.
f. The court may order the commissioner, when he has liquidated the assets of a foreign or alien insurer under this section, to pay claims of residents of this State against the insurer under such rules as to the liquidation of insurers under this act as are otherwise compatible with the provisions of this section.
L.1992,c.65,s.50.
2023 New Jersey Revised Statutes › Title 17B - Insurance › Section 17B:32-81 - Vesting of title with domiciliary liquidator

17B:32-81. Vesting of title with domiciliary liquidator
51. a. The domiciliary liquidator of an insurer domiciled in a reciprocal state shall, except as to special deposits and security on secured claims under subsection c. of section 52 of this act, be vested by operation of law with the title to all of the assets, property, contracts and rights of action, agents' balances, and all of the books, accounts and other records of the insurer located in this State. The date of vesting shall be the date of the filing of the petition, if that date is specified by the domiciliary law for the vesting of property in the domiciliary state. Otherwise, the date of vesting shall be the date of entry of the order directing possession to be taken. The domiciliary liquidator shall have the immediate right to recover balances due from agents and to obtain possession of the books, accounts and other records of the insurer located in this State. He also shall have the right to recover all other assets of the insurer located in this State, subject to the provisions of section 52 of this act.
b. If a domiciliary liquidator is appointed for an insurer not domiciled in a reciprocal state, the commissioner of this State shall be vested by operation of law with the title to all of the property, contracts and right of action, and all of the books, accounts and other records of the insurer located in this State, at the same time that the domiciliary liquidator is vested with title in the domicile. The commissioner of this State may petition for a conservation or liquidation order under section 49 or 50 of this act, or for an ancillary receivership under section 52 of this act, or after approval by the Superior Court may transfer title to the domiciliary liquidator, as the interests of justice and the equitable distribution of the assets require.
c. Claimants residing in this State may file claims with the liquidator or ancillary receiver, if any, in this State or with the domiciliary liquidator, if the domiciliary law permits. The claims shall be filed on or before the last date fixed for the filing of claims in the domiciliary liquidation proceedings.
L.1992,c.65,s.51.
2023 New Jersey Revised Statutes › Title 17B - Insurance › Section 17B:32-82 - Petition for appointment as ancillary receiver

17B:32-82. Petition for appointment as ancillary receiver
52. a. If a domiciliary liquidator has been appointed for an insurer not domiciled in this State, the commissioner may file a petition with the Superior Court requesting appointment as ancillary receiver in this State:
(1) If he finds that there are sufficient assets of the insurer located in this State to justify the appointment of an ancillary receiver;
(2) If the protection of creditors or policyholders in this State so requires.
b. The court may issue an order appointing an ancillary receiver in whatever terms it shall deem appropriate. The filing or recording of the order with the recorder of deeds in this State imparts the same notice as a deed, bill of sale or other evidence of title duly filed or recorded with that recorder of deeds.
c. When a domiciliary liquidator has been appointed in a reciprocal state, then the ancillary receiver appointed in this State may, whenever necessary, aid and assist the domiciliary liquidator in recovering assets of the insurer located in this State. The ancillary receiver shall, as soon as practicable, liquidate from their respective securities those special deposit claims and secured claims which are proved and allowed in the ancillary proceedings in this State, and shall pay the necessary expenses of the proceedings. He shall promptly transfer all remaining assets, books, accounts and records to the domiciliary liquidator. Subject to this section, the ancillary receiver and his deputies shall have the same powers and be subject to the same duties with respect to the administration of assets as a liquidator of an insurer domiciled in this State.
d. When a domiciliary liquidator has been appointed in this State, ancillary receivers appointed in reciprocal states shall have, as to assets and books, accounts and other records in their respective states, corresponding rights, duties and powers to those provided in subsection c. of this section for ancillary receivers appointed in this State.
L.1992,c.65,s.52.
2023 New Jersey Revised Statutes › Title 17B - Insurance › Section 17B:32-83 - Institution of proceedings

17B:32-83. Institution of proceedings
53. The commissioner in his sole discretion may institute proceedings under sections 9 and 10 of this act at the request of the commissioner or other appropriate insurance official of the domiciliary state of any foreign or alien insurer having property located in this State.
L.1992,c.65,s.53.
2023 New Jersey Revised Statutes › Title 17B - Insurance › Section 17B:32-84 - Claims filed in liquidation proceedings begun in State

17B:32-84. Claims filed in liquidation proceedings begun in State
54. a. In a liquidation proceeding begun in this State against an insurer domiciled in this State, claimants residing in foreign countries or in states not reciprocal states must file claims in this State, and claimants residing in reciprocal states may file claims either with the ancillary receivers, if any, in their respective states, or with the domiciliary liquidator. Claims shall be filed on or before the last date fixed for the filing of claims in the domiciliary liquidation proceeding.
b. Claims belonging to claimants residing in reciprocal states may be proved either in the liquidation proceeding in this State as provided in this act, or in ancillary proceedings, if any, in the reciprocal states. If notice of the claims and opportunity to appear and be heard is afforded the domiciliary liquidator of this State as provided in subsection b. of section 55 of this act with respect to ancillary proceedings, the final allowance of claims by the courts in ancillary proceedings in reciprocal states shall be conclusive as to amount and as to priority against special deposits or other security located in such ancillary states, but shall not be conclusive with respect to priorities against general assets under section 41 of this act.
L.1992,c.65,s.54.
2023 New Jersey Revised Statutes › Title 17B - Insurance › Section 17B:32-85 - Claims filed in liquidation proceedings in reciprocal state

17B:32-85. Claims filed in liquidation proceedings in reciprocal state
55. a. In a liquidation proceeding in a reciprocal state against an insurer domiciled in that state, claimants against the insurer who reside within this State may file claims either with the ancillary receiver, if any, in this State, or with the domiciliary liquidator. Claims shall be filed on or before the last dates fixed for the filing of claims in the domiciliary liquidation proceeding.
b. Claims belonging to claimants residing in this State may be proved either in the domiciliary state under the law of that state, or in ancillary proceedings, if any, in this State. If a claimant elects to prove his claim in this State, he shall file his claim with the liquidator in the manner provided in sections 34 and 35 of this act. The ancillary receiver shall make his recommendation to the court as under section 42 of this act. He shall also arrange a date for hearing if necessary under section 38 of this act and shall give notice to the liquidator in the domiciliary state, either by certified mail or by personal service at least 40 days prior to the date set for hearing. If the domiciliary liquidator, within 30 days after the giving of such notice, gives notice in writing to the ancillary receiver and to the claimant, either by certified mail or by personal service, of his intention to contest the claim, he shall be entitled to appear or to be represented in any proceeding in this State involving the adjudication of the claim.
c. The final allowance of the claim by the courts of this State shall be accepted as conclusive as to amount and as to priority against special deposits or other security located in this State.
L.1992,c.65,s.55.
2023 New Jersey Revised Statutes › Title 17B - Insurance › Section 17B:32-86 - Actions, proceedings prohibited during pendency of liquidation proceeding

17B:32-86. Actions, proceedings prohibited during pendency of liquidation proceeding
56. During the pendency in this or any other state of a liquidation proceeding, whether called by that name or not, no action or proceeding in the nature of an attachment, garnishment or levy of execution shall be commenced or maintained in this State against the delinquent insurer or its assets.
L.1992,c.65,s.56.
2023 New Jersey Revised Statutes › Title 17B - Insurance › Section 17B:32-87 - Order of distribution of claims

17B:32-87. Order of distribution of claims
57. a. In a liquidation proceeding in this State involving one or more reciprocal states, the order of distribution of the domiciliary state shall control as to all claims of residents of this and reciprocal states. All claims of residents of reciprocal states shall be given equal priority of payment from general assets regardless of where such assets are located.
b. The owners of special deposit claims against an insurer for which a liquidator is appointed in this or any other state shall be given priority against the special deposits in accordance with the laws governing the creation and maintenance of the deposits. If there is a deficiency in any deposit, so that the claims secured by it are not fully discharged from it, the claimants may share in the general assets, but the sharing shall be deferred until general creditors, and also claimants against other special deposits who have received smaller percentages from their respective special deposits, have been paid percentages of their claims equal to the percentage paid from the special deposit.
c. The owner of a secured claim against an insurer for which a liquidator has been appointed in this or any other state may surrender his security and file his claim as a general creditor, or the claim may be discharged by resort to the security in accordance with section 40 of this act, in which case the deficiency, if any, shall be treated as a claim against the general assets of the insurer on the same basis as claims of unsecured creditors, except to the extent such deficiency is treated as a Class 3 claim pursuant to subsection b. of section 41 of this act.
L.1992,c.65,s.57.
2023 New Jersey Revised Statutes › Title 17B - Insurance › Section 17B:32-88 - Failure of ancillary receiver to transfer assets

17B:32-88. Failure of ancillary receiver to transfer assets
58. If an ancillary receiver in another state or foreign country, whether called by that name or not, fails to transfer to the domiciliary liquidator in this State any assets within his control, other than special deposits, diminished only by the expenses of the ancillary receivership, if any, the claims filed in the ancillary receivership, other than special deposit claims or secured claims, shall be Class 7 claims pursuant to paragraph (7) of subsection a. of section 41 of this act.
L.1992,c.65,s.58.
2023 New Jersey Revised Statutes › Title 17B - Insurance › Section 17B:32-89 - Persons entitled to protection

17B:32-89. Persons entitled to protection
59. a. For the purpose of this section, the following persons are entitled to protection under subsection b. of this section:
(1) All receivers responsible for the conduct of a delinquency proceeding under this act including present and former receivers; and
(2) Their employees, including all present and former special deputies and assistant special deputies appointed by the commissioner and all persons whom the commissioner, special deputies, or assistant special deputies have employed to assist in a delinquency proceeding under this act. Attorneys, accountants, auditors and other professional persons or firms who are retained by the receiver as independent contractors and their employees shall not be considered employees of the receiver for purposes of this section.
b. No person covered under subsection a. of this section shall be liable, either personally or in his official capacity, for any claim for damage to or loss of property or personal injury or other civil liability caused by or resulting from any alleged act, error or omission of that person arising out of or by reason of his duties as a receiver, or employment by a receiver, except that nothing in this subsection shall be deemed to grant immunity to any person causing such damage by his willful, wanton or grossly negligent act of commission or omission.
L.1992,c.65,s.59.
2023 New Jersey Revised Statutes › Title 17B - Insurance › Section 17B:32-91 - Rules, regulations

17B:32-91. Rules, regulations
61. The commissioner may, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), promulgate necessary rules and regulations to implement the provisions of this act.
L.1992,c.65,s.61.
2023 New Jersey Revised Statutes › Title 17B - Insurance › Section 17B:32A-2 - Purpose; protection from hardship.

17B:32A-2 Purpose; protection from hardship.
2. a. The purpose of P.L.1991, c.208 (C.17B:32A-1 et seq.) is to protect, subject to certain limitations, those persons specified in subsection a. of section 3 of P.L.1991, c.208 (C.17B:32A-1 et seq.) from hardship because of the impairment or insolvency of any member insurer that issued the life, health, and annuity policies, plans or contracts specified in subsection b. of section 3 of P.L.1991, c.208 (C.17B:32A-1 et seq.).
b. To provide this protection, an association of member insurers is created to pay benefits and to continue coverages, as limited by P.L.1991, c.208 (C.17B:32A-1 et seq.), and members of the association are subject to assessment to provide funds to carry out the purposes of P.L.1991, c.208 (C.17B:32A-1 et seq.).
L.1991,c.208,s.2; amended 2022, c.98, s.1.
2023 New Jersey Revised Statutes › Title 17B - Insurance › Section 17B:32A-5 - New Jersey Life and Health Insurance Guaranty Association created

17B:32A-5. New Jersey Life and Health Insurance Guaranty Association created
5. a. There is created a nonprofit legal entity to be known as the New Jersey Life and Health Insurance Guaranty Association. All member insurers shall be and remain members of the association as a condition of their authority or license to transact insurance, health service corporation business, hospital service corporation business, medical service corporation business, or health maintenance organization business in this State. Any member insurer shall remain a member insurer for four years after it ceases to hold a certificate of authority or license. The association shall perform its functions under the plan of operation established and approved pursuant to section 9 of P.L.1991, c.208 (C.17B:32A-9) and shall exercise its powers through the board of directors established under section 6 of P.L.1991, c.208 (C.17B:32A-6). The association shall be under the immediate supervision of the commissioner and shall be subject to the applicable provisions of the insurance laws of this State. Meetings or records of the association may be opened to the public upon majority vote of the board of directors of the association.
b. For purposes of administration and assessment the association shall maintain two accounts:
(1) The life insurance and annuity account which shall include the following subaccounts:
(a) life insurance subaccount;
(b) annuity subaccount; and
(c) unallocated annuity subaccount.
(2) The health account.
L.1991,c.208,s.5; amended 2022, c.98, s.4.
2023 New Jersey Revised Statutes › Title 17B - Insurance › Section 17B:32A-6 - Board of Directors of association

17B:32A-6. Board of Directors of association
6. a. There shall be a board of directors of the association which shall consist of not less than seven nor more than eleven member insurers serving terms as established in the plan of operation. The members of the board shall be selected by member insurers subject to the approval of the commissioner. Vacancies on the board shall be filled for the remaining period of the term by a majority vote of the remaining board members, subject to the approval of the commissioner. To select the initial board of directors, and initially organize the association, the commissioner shall give notice to all member insurers of the time and place of the organizational meeting. In determining voting rights at the organizational meeting each member insurer shall be entitled to one vote in person or by proxy. If the board of directors is not selected within 60 days after notice of the organizational meeting, the commissioner may appoint the initial members.
b. In approving selections or appointing members to the board, the commissioner shall consider, among other things, whether all member insurers are fairly represented.
c. Members of the board may be reimbursed from the assets of the association for reasonable expenses incurred by them as members of the board of directors, but members of the board shall not otherwise be compensated by the association for their services.
L.1991,c.208,s.6; amended 2022, c.98, s.5.
2023 New Jersey Revised Statutes › Title 17B - Insurance › Section 17B:32A-10 - Additional duties, powers of commissioner

17B:32A-10. Additional duties, powers of commissioner
10. a. In addition to the duties and powers enumerated elsewhere in P.L.1991, c.208 (C.17B:32A-1 et seq.), the commissioner shall:
(1) upon request of the board of directors, provide the association with a statement of the premiums in this State and any other appropriate states for each member insurer;
(2) when an impairment is declared and the amount of the impairment is determined, serve a demand upon the impaired insurer to make good the impairment within a reasonable time. Notice to the impaired insurer shall constitute notice to its shareholders, if any. The failure of the impaired insurer to promptly comply with a demand shall not excuse the association from the performance of its powers and duties under P.L.1991, c.208 (C.17B:32A-1 et seq.);
(3) in any liquidation or rehabilitation proceeding involving a domestic member insurer, be appointed as the liquidator or rehabilitator.
b. The commissioner may suspend or revoke, after notice and hearing, the certificate of authority to transact business in this State of any member insurer which fails to pay an assessment when due or fails to comply with the plan of operation. As an alternative, the commissioner may levy a penalty on any member insurer which fails to pay an assessment when due. That penalty shall not exceed five percent of the unpaid assessment per month, but no penalty shall be less than $100 per month.
c. Any action of the board of directors or the association may be appealed to the commissioner by any member insurer if that appeal is taken within 60 days of its receipt of notice of the final action being appealed. If a member insurer is appealing an assessment, the amount assessed shall be paid to the association and made available to meet association obligations during the pendency of an appeal. If the appeal of an assessment is upheld, the amount paid in error or excess shall be returned to the member insurer. Any final action or order of the commissioner shall be subject to judicial review in a court of competent jurisdiction.
d. The liquidator, rehabilitator, or conservator of any impaired insurer may notify all interested persons of the effect of P.L.1991, c.208 (C.17B:32A-1 et seq.).
L.1991,c.208.s.10; amended 2022, c.98, s.9.
2023 New Jersey Revised Statutes › Title 17B - Insurance › Section 17B:32A-13 - Association subject to examination, regulation

17B:32A-13 Association subject to examination, regulation
13. The association shall be subject to examination and regulation by the commissioner. The board of directors shall submit to the commissioner each year, not later than 120 days after the close of the association's fiscal year, a financial report in a form approved by the commissioner and a report of its activities during the preceding fiscal year. Upon request of a member insurer, the association shall provide a copy of the report.
L.1991,c.208,s.13; amended 2022, c.98, s.12.
2023 New Jersey Revised Statutes › Title 17B - Insurance › Section 17B:32A-15 - Immunity from liability

17B:32A-15. Immunity from liability
15. a. There shall be no liability on the part of, and no cause of action of any nature shall arise against, any member insurer or its agents or employees, the association or its agents or employees, members of the board of directors, or the commissioner or his representatives, for any action or omission by them in the performance of their powers and duties under P.L.1991, c.208 (C.17B:32A-1 et seq.). This immunity shall extend to the participation in any organization of one or more other state associations of similar purposes and to any such organization and its agents or employees.
b. With respect to any impairment or insolvency of a health service corporation created pursuant to P.L.1985, c.236 (C.17:48E-1 et seq.), the association shall have no cause of action against any not-for-profit or nonprofit corporation that is regulated by a law governing the conduct of not-for-profit or nonprofit corporations, except in the event of willful or wanton conduct, unless the not-for-profit or nonprofit corporation is a provider of health care services as defined in section 1 of P.L.1985, c.236 (C.17:48E-1). For purposes of this subsection, "willful or wanton conduct" means a course of action which shows the actual or deliberate intent to cause harm.
L.1991,c.208,s.15; amended 2022, c.98, s.13.
2023 New Jersey Revised Statutes › Title 17B - Insurance › Section 17B:32A-16 - Stay of proceedings involving insolvent insurer

17B:32A-16. Stay of proceedings involving insolvent insurer
16. Upon application and notice, all proceedings in which an insolvent insurer is a party or is obligated to defend a party in any court in this State shall be stayed for 180 days and any additional time thereafter as may be determined by the court from the date the insolvency is determined or any ancillary proceeding is initiated in the State, whichever is later, to permit proper defense by the association of all pending causes of action. With respect to any covered claims arising from a judgment under any decision, verdict or finding based on the default of the insolvent insurer or its failure to defend an insured, the association either on its own behalf or on behalf of the insured may apply to have the judgment, order, decision, verdict or finding set aside by the court in which the judgment, order, decision, verdict or finding is entered and shall be permitted to defend against the claim on the merits.
L.1991,c.208,s.16; amended 2022, c.98, s.14.
2023 New Jersey Revised Statutes › Title 17B - Insurance › Section 17B:32A-18 - Member insurer may offset assessments against premium tax liability

17B:32A-18. Member insurer may offset assessments against premium tax liability
18. a. A member insurer may offset against its premium tax liability, attributable to premiums written in that year, and determined pursuant to section 1 of P.L.1945, c.132 (C.54:18A-1), any assessments for which a certificate of contribution has been issued, pursuant to subsection h. of section 8 of P.L.1991, c.208 (C.17B:32A-8) to the extent of 10% of the amount of those assessments for each of the five calendar years following the second year after the year in which those assessments were paid, except that no member insurer may offset its premium tax liability by more than 20% of its premium tax liability in any one year. If a member insurer should cease doing business in this State, any uncredited assessments may be offset against its premium tax liability for the year in which it ceases to do business in this State.
b. A member insurer that is exempt from taxes referenced in subsection a. of this section may recoup its assessments by a surcharge on its premiums or by a surcharge on its membership fees (as applicable) in a sum reasonably calculated to recoup the assessments over a reasonable period of time, as approved by the commissioner. Amounts recouped shall not be considered premiums for any other purpose, including the computation of gross premium tax, the medical loss ratio, or insurance producer commission. If a member insurer collects excess surcharges, the member insurer shall remit the excess amount to the association, and the excess amount shall be applied to reduce future assessments in the appropriate account.
c. Any sums which are acquired by member insurers as the result of a refund from the association pursuant to subsection f. of section 8 of P.L.1991, c.208 (C.17B:32A-8), and which have theretofore been offset against premium taxes as provided in subsection a. of this section, shall be paid by those member insurers to the State as the Director of the Division of Taxation may require. The association shall notify the commissioner and the Director of the Division of Taxation of any refunds made.
d. This section shall not apply in any way to the imposition or collection of, and no offset shall be permitted against, the surtax on premiums authorized pursuant to section 76 of P.L.1990, c.8 (C.17:33B-49).
L.1991,c.208,s.18; amended 2022, c.98, s.16.
2023 New Jersey Revised Statutes › Title 17B - Insurance › Section 17B:32A-19 - Provisions not applicable to certain insurers

17B:32A-19. Provisions not applicable to certain insurers
19. a. The provisions of P.L.1991, c.208 (C.17B:32A-1 et seq.) prior to the effective date of P.L.2022, c.98 (C.17B:32A-2 et al.) shall apply to all matters relating to any impaired insurer or insolvent insurer as defined in section 4 of P.L.1991, c.208 (C.17B:32A-4) for which the association first became obligated under section 7 of P.L.1991, c.208 (C.17B:32A-7) in effect prior to the effective date of P.L.2022, c.98 (C.17B:32A-2 et al.).
b. The provisions of P.L.1991, c.208 (C.17B:32A-1 et seq.) in effect on and after the effective date of P.L.2022, c.98 (C.17B:32A-2 et al.) shall apply to all matters relating to any impaired insurer or insolvent insurer as defined in section 4 of P.L.1991, c.208 (C.17B:32A-4) for which the association first became obligated under section 7 of P.L.1991, c.208 (C.17B:32A-7) on or after the effective date of P.L.2022, c.98 (C.17B:32A-2 et al.).
L.1991,c.208,s.19; amended 2022, c.98, s.17.
2023 New Jersey Revised Statutes › Title 17B - Insurance › Section 17B:32B-2 - Purpose of act.

17B:32B-2 Purpose of act.
2. The purpose of this act is to protect, subject to certain limitations, covered individuals and providers against the failure or inability of HIP Health Plan of New Jersey, Inc. and American Preferred Provider Plan, Inc. to perform certain contractual obligations due to their insolvency. The act creates a funding mechanism and authorizes this funding mechanism to pay certain unpaid contractual obligations of these insolvent health maintenance organizations incurred prior to the date of their insolvency. In addition, providers of health care services must agree to forgive one-third of those unpaid contractual obligations due them to receive payment from the funding mechanism.
This act is intended to provide only limited coverage of claims against HIP Health Plan of New Jersey, Inc. and American Preferred Provider Plan, Inc. This act is not intended to provide coverage for claims of creditors other than those of covered individuals or providers.
L.2000,c.12,s.2.
2023 New Jersey Revised Statutes › Title 17B - Insurance › Section 17B:32B-3 - Definitions relative to certain insolvent health maintenance organizations.

17B:32B-3 Definitions relative to certain insolvent health maintenance organizations.
3. As used in this act:
"Association" means the New Jersey Insolvent Health Maintenance Organization Assistance Association created by section 5 of this act.
"Commissioner" means the Commissioner of Banking and Insurance.
"Contractual obligation" means an obligation, arising from an agreement, policy, certificate or evidence of coverage, to a covered individual or provider incurred prior to the declaration of insolvency of a covered health maintenance organization that remains unpaid at the time of its insolvency, but does not include claims by former employees, including medical professional employees for deferred compensation, severance, vacation or other employment benefits.
"Covered health maintenance organization contract" means a policy, certificate, evidence of coverage or contract for health care services issued in New Jersey by HIP Health Plan of New Jersey, Inc. or American Preferred Provider Plan, Inc., but shall not include any contract with an employer or other person to provide health care benefits on an administrative services only basis.
"Covered individual" means an enrollee or member of HIP Health Plan of New Jersey, Inc. or American Preferred Provider Plan, Inc.
"Department" means the Department of Banking and Insurance.
"Eligible claim" means a claim for a covered service or benefit under a contract or policy issued by an insolvent health maintenance organization and provided by a provider or to a covered individual prior to the declaration of insolvency of an insolvent organization, but shall not include any claim filed after the claims bar date established by the Superior Court of New Jersey supervising the insolvent organizations.
"Fund" means the New Jersey Insolvent Health Maintenance Organization Assistance Fund created pursuant to section 6 of this act.
"Insolvent organization" means HIP Health Plan of New Jersey, Inc. or American Preferred Provider Plan, Inc.
"Member organization" means a person who holds a certificate of authority to operate a health maintenance organization pursuant to P.L.1973, c.337 (C.26:2J-1 et seq.), and includes any person whose certificate of authority has been suspended, revoked or nonrenewed.
"Net written premiums received" means direct premiums as reported on the annual financial statement submitted pursuant to section 9 of P.L.1973, c.337 (C.26:2J-9).
"Provider" means a physician, hospital or other person which is licensed or otherwise authorized by this State, or licensed or otherwise authorized under similar laws of another state, to provide health care services, and which provided health care services to covered individuals. As used in this act, provider also includes persons who incurred a contractual obligation as defined by this act by providing home health care services, durable medical equipment, physical therapy services, medical transportation, ambulance services or laboratory services to covered individuals.
L.2000,c.12,s.3.
2023 New Jersey Revised Statutes › Title 17B - Insurance › Section 17B:32B-4 - Payment for eligible services, benefits.

17B:32B-4 Payment for eligible services, benefits.
4. This act shall provide payment for eligible services or benefits under a covered health maintenance organization contract on an equitable basis to any covered individual or provider who is entitled to receive payment from HIP Health Plan of New Jersey, Inc. and American Preferred Provider Plan, Inc. for an eligible claim that remains unpaid.
L.2000,c.12,s.4.
2023 New Jersey Revised Statutes › Title 17B - Insurance › Section 17B:32B-5 - New Jersey Insolvent Health Maintenance Organization Assistance Association.

17B:32B-5 New Jersey Insolvent Health Maintenance Organization Assistance Association.
5. There is created a nonprofit legal entity to be known as the New Jersey Insolvent Health Maintenance Organization Assistance Association. All health maintenance organizations authorized to transact business in this State shall be and remain members of the association as a condition of their authority to transact business in this State. The association shall perform its functions under the plan of operation established and approved pursuant to section 10 of this act and shall exercise its powers through a board of directors established pursuant to section 7 of this act. The association shall be supervised by the commissioner and is subject to the provisions of this act.
L.2000,c.12,s.5.
2023 New Jersey Revised Statutes › Title 17B - Insurance › Section 17B:32B-6 - New Jersey Insolvent Health Maintenance Organization Assistance Fund.

17B:32B-6 New Jersey Insolvent Health Maintenance Organization Assistance Fund.
6. a. For purposes of administration and assessment, the New Jersey Insolvent Health Maintenance Organization Assistance Fund is created, and shall be held in trust and maintained by the association as provided in this act for the purposes specified in this act.
b. The New Jersey Insolvent Health Maintenance Organization Assistance Fund is created as a limited purpose trust fund consisting of not more than $100,000,000 as follows:
(1) $50,000,000 to be deposited in the fund pursuant to section 17 of this act; and
(2) an additional aggregate sum of not more than $50,000,000 collected through assessments over a three-year period as provided in section 9 of this act.
Moneys deposited in the fund pursuant to this section shall be deposited with the State Treasurer in the State of New Jersey Cash Management Fund established pursuant to section 1 of P.L.1977, c.281 (C.52:18A-90.4), pending disbursement for the payment of eligible claims as provided in this act.
c. Moneys deposited in the fund in accordance with this act shall be used by the association to pay eligible claims of the insolvent organizations and loss adjustment expenses associated with the claims, including the cost of claims adjudication.
L.2000,c.12,s.6.