New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 15 - GROUP SELF-INSURANCE › Subchapter 2 - JOINT INSURANCE FUNDS FOR LOCAL GOVERNMENTAL UNITS PROVIDING PROPERTY AND LIABILITY COVERAGES › Section 11:15-2.15 - Assessments

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Each participating member of a joint insurance fund shall appropriate and pay to the fund its assessment as required by the joint insurance fund. During the first year of operation of a joint insurance fund these contributions shall be paid in two equal installments, the first installment payable no later than January 15 and the second installment payable no later than May 15 or in any other manner that the Commissioner in his discretion may direct. Subsequent years' assessments may be paid in such installments as shall be provided in the fund's bylaws, provided, however, that the full assessment shall be paid by each member no later than August 1, or in such other manner as provided in the fund's bylaws as approved by the Commissioner and the Commissioner of the Department of Community Affairs.
(b) Each member's annual assessment shall consist of an amount allocated for the administrative account, payment of interest and repayment of principal on bonds issued for environmental impairment liability funds, when appropriate, plus a specific assessment to establish and/or replenish the claim or loss retention trust fund account for each type of coverage provided by the fund and in which such member participates.
(c) The total amount of each member's annual assessments to the fund shall be certified by the fund commissioners to the governing body of each participant at least one month prior to the beginning of the next fiscal year. As a condition of continued participation in the fund, each member shall pay the amount certified at such time and in such manner provided in the fund's bylaws.
(d) Unless otherwise approved by the Commissioner, the annual assessment of each fund member providing for the self-insurance of workers' compensation and employers' liability coverages shall be based upon the Experience Rating Plan provided for in the New Jersey Workers' Compensation and Employers' Liability Insurance Manual on file with the Commissioner. The Commissioner may withdraw his or her approval of any assessment if he or she finds that such assessment is unreasonable or inadequate for the members of the fund to which it applies. In taking any action under this section, the Commissioner may require that the fund commissioners, the executive committee, the administrator, any servicing organization or agent of the fund provide such information as he or she deems necessary.
(e) Nothing contained in this section shall preclude the assessment and payment of supplemental assessments as provided in 11:15-2.1 6.
(f) In the case of an environmental liability fund, notwithstanding any provision of this section to the contrary, an annual assessment may be funded by proceeds of any bonds issued by the fund pursuant to 40A:10-38.1, including any interest income earned thereon, in an amount not to exceed 25 percent of the amount of such assessment. Any remaining amounts from the proceeds of a bond issue and interest income shall be deposited in the contingency account established pursuant to 11:15-2.1 3(b). The 25 percent limitation shall not apply to the funding of any supplemental assessments that may be required pursuant to 11:15-2.1 6. In no event shall the proceeds of a bond issue be used to replenish the administrative account, but interest income earned on such proceeds may be used for this purpose.