New Jersey Administrative Code › Title 17 - TREASURY - GENERAL › Chapter 20 - RULES OF THE LOTTERY COMMISSION › Subchapter 12 - COURIER SERVICES › Section 17:20-12.5 - Insurance, indemnification, and bonding of courier service

Current through Register Vol. 56, No. 14, July 15, 2024
(a) As a
				requirement to the issuance of a courier service registration, such courier
				service agrees to the following:
1. The
				courier service shall indemnify and defend, at registrant's own expense, and
				release the State, the Division, and any of the officials and employees of the
				State or the Division from any and all claims, damages, claims for damages,
				causes of action or suits, and related expenses, including court, attorney, or
				other fees, that may arise out of or occur directly or indirectly as a result
				of any act or omission of such courier service, its officers, employees, and
				anyone determined to be the courier service's agent pursuant to the common law
				tenets of agency law, or operation carried on pursuant to or in accordance with
				such registration, including, but not limited to, the purchase of courier
				services through the courier service's system, placement of requests for
				courier services through such courier service's system or the generation of, or
				failure to generate, tickets to complete ticket purchases related to such
				requests for courier services. This obligation to indemnify shall survive the
				expiration, revocation, or suspension of the courier service's
				registration;
2. The courier
				service shall obtain and maintain during the term of its registration
				sufficient insurance, which shall include cyber liability insurance, errors and
				omissions insurance, directors and officers insurance, and such other insurance
				coverage, with limits and coverage requirements and minimum carrier ratings as
				the courier services application form states. Proof of same, in the form of
				declaration pages, shall be provided to the Division prior to the courier
				service's commencement of operations. Lapse of any insurance coverage specified
				on the application form may result in revocation of courier service
				registration;
3. The courier
				service shall post a bond or its equivalent in an amount as determined by the
				Director in consultation with the Director of the Division of Risk Management
				and as set forth in the courier service application to be no less than $ 40
				million for the protection of its courier customers. Proof of same shall be
				provided to Division;
4. The
				courier service shall post a bond or its equivalent in an amount as determined
				by the Director in consultation with the Director of the Division of Risk
				Management and as set forth in the courier service application to cover general
				business liability;
5. The courier
				service shall bond all courier service employees. Proof of same shall be
				provided to Division;
6. The
				courier service shall comply with all other bond requirements or their
				equivalent in the courier service application as determined by the Director in
				consultation with the Director of the Division of Risk Management;
7. Each bond or its equivalent shall be
				conditioned on the premise that the applicant, its agents, or its employees
				will not be guilty of fraud or extortion, will comply with the rules and
				regulations promulgated by the Director, and will pay all damages occasioned to
				any person by reason of misstatement, misrepresentation, fraud or deceit, or
				any unlawful act or omission in connection with the provisions in this section
				and related business conduct;
8.
				The courier service shall state in its contracts and agreements with its
				affiliates, vendors, and customers that nothing in the contracts or agreements
				shall give rise to liability of the State or of the Division, its officials, or
				employees. The courier service shall state on its website and mobile
				application, along with any other disclaimers, legally-required notices, or
				other notices concerning liability of the courier service, that nothing
				appearing on the courier service website and no transactions conducted on or
				through the courier service website or systems shall give rise to liability of
				the State or of the Division, its officials, or employees; and
9. The courier service shall disclose its
				insurance coverages and amounts in its website and/or mobile
				application.