N.J. Admin. Code § 12:18-2.26 - Disposition of security upon termination
(a) The security
provided for in this subchapter should be applied by the Division to the
payment of any unpaid obligations under the private plan. Upon termination of a
private plan, which does not provide for the assumption by an admitted insurer
of the liability to pay benefits, or upon withdrawal of approval of such
private plan, the Division shall retain the security deposited, for the purpose
of securing the payment of the obligations of the private plan. Upon the
expiration of all benefit claims outstanding after the lapse of five complete
calendar quarters following the effective date of termination or withdrawal of
approval, the Division shall make a final assessment of the charges against the
employer as provided in the Act and these regulations.
(b) If the amount of such assessment is not
paid within 30 days after the date of notice thereof, the Division may collect
the amount of the assessment out of the security on deposit, or may call upon
the surety insurer for payment. Any security thereafter remaining shall be
returned to the employer or the employer's legal representative or assignee, or
the surety insurer paying the amount of such assessment shall be discharged of
its obligation under the bond.
(c)
The Division may make a partial return of the security at an earlier date if it
finds that such security is in excess of that required.
Notes
See: 26 New Jersey Register 1326(a), 26 New Jersey Register 2131(a).
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