New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 15 - GROUP SELF-INSURANCE › Subchapter 4 - JOINT INSURANCE FUNDS FOR SCHOOL BOARDS PROVIDING PROPERTY AND LIABILITY COVERAGES › Section 11:15-4.4 - General requirements

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Every joint insurance fund shall be subject to and operate in compliance with the provisions of the Public Schools Contracts Law (18A:18A-1 et seq.) and the applicable regulations of the State Investment Council governing the investment of surplus public monies of the State.
(b) All monies, assessments, funds and other assets of a joint insurance fund shall be under the exclusive control of its board of trustees.
(c) A joint insurance fund shall be governed by the Public School Contracts Law (18A:18A-1 et seq.), and all other applicable laws in the purchase of any goods, materials, supplies and services.
(d) 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 law. The custodian shall report to the trustees at least quarterly on investment and interest income.
(e) The trustees shall annually prepare not later than the time required by law for the preparation of the budget for school boards, 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 until a hearing has been held giving all members of the joint insurance fund the opportunity to present comments or objections.
2. Not later than June 30 of each year, the trustees 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 governing body 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 or majority vote of a quorum of the board of trustees of the joint insurance fund.
5. A copy of any amendment to a fund budget shall be filed quarterly with the governing body 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.