N.J. Admin. Code § 11:15-7.26 - Servicing organizations; administrator
(a) No
servicing organization of a fund or producer appointed pursuant to
N.J.A.C.
11:15-7.6(d)10, or their
employees, officers or directors shall have either a direct or indirect
financial interest in the administrator of that group, or be an employee,
officer or director of the administrator, unless notice of such interest has
been provided to the trustees and members.
(b) No administrator of a group, or its
employees, officers or directors shall be an employee, officer or director of,
or have either a direct or indirect financial interest in, a servicing
organization of that group, or an insurance producer appointed by that fund
pursuant to
N.J.A.C.
11:15-7.6(d)10, unless
notice of such interest has been provided to the trustees and
members.
(c) Each contract with a
servicing organization providing claims adjustment and administration services
shall include a clause stating: "Unless the trustees otherwise permit, the
servicing organization shall handle to their conclusion all claims and other
obligations incurred during the contract period."
(d) The trustees shall notify the Department
within 10 days of any determination to terminate or nonrenew any agreement with
a servicing organization. The notification shall include a detailed statement
that sets forth the manner and method by which claims handling and other
obligations performed by the servicing organization will be provided or a
statement that sets forth the reasons why the trustees believe that the
particular service is no longer necessary.
(e) The trustees may designate an
administrator to carry out the policies established by the trustees and to
provide day-to-day management of the group. The minutes of the trustees'
meetings shall detail the areas of authority delegated to the
administrator.
(f) Any employee,
officer or director of an administrator, servicing organization, or producer
appointed pursuant to
N.J.A.C.
11:15-7.6(d)10 shall
disclose to the trustees any direct or indirect financial interest such
employee, officer or director has in any other administrator, servicing
organization or insurance producer.
Notes
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