N.J. Admin. Code § 11:15-7.22 - Disbursements and/or payment of claims

(a) All disbursements, payment of claims settlements or other expenditure of funds of the risk management group whether for administrative expenses or for claims purposes must be approved by a majority of the board of trustees, unless approved pursuant to (b) below.

(b) To allow the expeditious resolution of certain claims, the board of trustees may designate the group's administrator or servicing organization as a "certifying and approving officer." The certifying and approving officer may be authorized by the board of trustees to approve for payment of any or specified types of claims in an amount not to exceed an amount approved by the Commissioner in the risk management program. The authority of the certifying and approving officer may be conditioned or restricted by the board of trustees to require prior consultation, limitation as to the types or total amount of claims or payments which may be approved, or such other procedures or restrictions as the board of trustees may deem appropriate. The authority of the certifying and approving officer may be revoked or modified at any time by the trustees.

1. Upon approval, the certifying and approving officer shall certify the amount and particulars of such approved claims to the official having custody of the group's assets, directing that a check for payment be prepared.

2. The certifying and approving officer shall prepare a report of all claims approved by him or her since the last such report, detailing the nature and amount of the claim, the payee, the reasons supporting payment and any other pertinent information. This report shall be submitted to the board of trustees at their next scheduled meeting. The board of trustees shall review and approve the actions of the certifying and approving officer. In the event a claim approved and paid by the certifying and approving officer is not approved by the board of trustees, it shall direct appropriate action to be taken.

(c) All requests for payments shall be accompanied by a detailed bill of items or demand, specifying particularly how the bill or demand is made up, with the certification of the party claiming payment that it is correct, and shall be certified by an officer or duly designated agent or employee of the risk management group having knowledge of the facts that the goods have been received by, or the services rendered to the group. In the case of claims or losses to be charged against any loss fund, the group's claims administrator, if there be one, shall certify as to the correctness and validity of the claim.

(d) All claims shall be paid by check. The check shall be signed by two persons so designated by the trustees. Payment of claims may be made in such other manner as provided in the group's bylaws as approved by the Commissioner.

(e) All claims and other disbursements approved for payment by the trustees or certifying and approving officer shall be recorded in a claims register and general ledger maintained by the custodian of the group's assets.

Notes

N.J. Admin. Code § 11:15-7.22