Bill Text: NJ A1938 | 2010-2011 | Regular Session | Amended
Bill Title: Requires examinations of joint insurance funds and certain reporting by those funds.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2011-06-23 - Received in the Senate, Referred to Senate Commerce Committee [A1938 Detail]
Download: New_Jersey-2010-A1938-Amended.html
ASSEMBLY, No. 1938
STATE OF NEW JERSEY
214th LEGISLATURE
INTRODUCED FEBRUARY 8, 2010
Sponsored by:
Assemblyman JACK CONNERS
District 7 (Burlington and Camden)
SYNOPSIS
Requires examinations of joint insurance funds and certain reporting by those funds.
CURRENT VERSION OF TEXT
As reported by the Assembly Financial Institutions and Insurance Committee on May 19, 2011, with amendments.
An Act concerning certain joint insurance funds and amending and supplementing P.L.1983, c.372 and P.L.1983, c.108.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 11 of P.L.1983, c.372 (C.40A:10-46) is amended to read as follows:
11. The insurance fund commissioners or the executive board thereof, as the case may be, shall cause an annual audit to be conducted by an independent certified public accountant or a registered municipal accountant in accordance with generally accepted accounting principles and the rules and regulations promulgated by the Commissioner of Banking and Insurance pursuant to section 14 of this act. Copies of every audit shall be submitted to the Commissioner of Banking and Insurance [and], the Commissioner of the Department of Community Affairs and the fund's members and the governing body of each participating local unit within 30 working days of its completion.
(cf: P.L.1983, c.372, s.11)
2. Section 12 of P.L.1983, c.372 (C.40A:10-47) is amended to read as follows:
12. The Commissioner of Banking and Insurance may conduct such examinations of any joint insurance fund as he deems necessary, or at any time the commissioner has reasonable cause to believe the fund may be in a financial condition detrimental to its members or to the public or insolvent. The expense of any such examination shall be borne by the affected fund. Examinations made pursuant to this section shall be conducted by State employees; provided, however, that if State employees are not able to conduct an examination, the commissioner may authorize and employ other persons, including, but not limited to, attorneys, appraisers, independent actuaries, independent certified public accountants, or other professionals or specialists as determined by the commissioner, to conduct or assist in the examination.
(cf: P.L.1983, c.372, s.12)
3. (New section) a. A
joint insurance fund shall provide its members and the governing body of each
participating local unit with quarterly reports covering the activities and
status of the fund for that reporting period. The reports shall include, but
not be limited to, the minutes, the administrator's or lead agency's report and
a summation of fund activity, including 1[comments on]
identification of1
previously reported claims and newly reported claims, and any of the
information required by the fund commissioners or the Commissioner of Banking
and Insurance.
b. In addition to the reports required by section 11 of P.L.1983, c.372 (C.40A:10-46), a joint insurance fund shall file with the Commissioner of Banking and Insurance and provide to its members and the governing body of each participating local unit, quarterly unaudited statements of the financial condition of the fund, including, but not limited to, a report of the outstanding liabilities by line of coverage showing the number of claims, amounts paid to date and current reserves for unpaid losses, claims and unearned assessments and a cash flow analysis of the fund and other information required by the commissioner by regulation, in a form acceptable to the commissioner within 60 days after the end of each calendar quarter.
1c. A joint insurance fund may satisfy the requirements to provide quarterly reports and unaudited statements to its members and participating local unit governing bodies pursuant to subsections a. and b. of this section by distributing them in print format or by electronic mail, or by posting them in a printable format on the joint insurance fund's Internet website.1
4. (New section) An actuarial valuation of a joint insurance fund shall be performed when it changes or replaces its third party administrator.
5. Section 7 of P.L.1983, c.108 (C.18A:18B-7) is amended to read as follows:
7. Review of bylaws; investigations by the Commissioner of Banking and Insurance.
a. No school board insurance group, nor any joint self-insurance fund of the group, may begin functioning as a means of providing insurance coverage or protection for or among its members until the group's bylaws and risk management program have been filed with and approved by the commissioner. If the commissioner fails to approve or disapprove the bylaws or risk management program, or both, as the case may be, within 60 days following filing in his office, the bylaws or risk management program, or both, as the case may be, shall be deemed approved. If the commissioner disapproves the bylaws or risk management program, he shall set forth the reasons for his disapproval in writing. The reasonable costs of the commissioner's review of the bylaws and risk management program shall be chargeable to the boards of education seeking to establish the group.
b. Every school board insurance group shall file an annual report, with the commissioner, on a form prescribed by the commissioner, at a time to be fixed by the commissioner. The report shall include a financial statement of the group's assets and liabilities, the claims paid during the preceding 12 months, current reserves, incurred losses, and any other information that the commissioner may require. The commissioner may require more frequent reports as he deems necessary. Copies of the annual report shall be submitted to every member of the school board insurance group 1by distributing the report in print format or by electronic mail, or by posting it in a printable format on the school board insurance group's or joint self-insurance fund's Internet website1 .
c. The commissioner shall have authority to examine the books, records and affairs of any school board insurance group or joint self-insurance fund for the purpose of determining compliance with this act. The reasonable costs of any examination or review shall be chargeable to the school board insurance group.
d. The commissioner may suspend or terminate the authority of any school board insurance fund or direct or take any action he may deem necessary for good cause, to enable a fund to meet its obligations, cover its expected losses, or liquidate, rehabilitate or otherwise modify its affairs. The commissioner may take such action in the event of:
(1) A failure to comply with the rules and regulations promulgated by the commissioner or with any of the provisions of P.L.1983, c.108 (C.18A:18B-1 et seq.);
(2) A failure to comply with a lawful order of the commissioner; or
(3) A deterioration of the financial condition of the fund to the extent that it causes an adverse effect upon the ability of the school board insurance fund to pay expected losses.
e. The commissioner may, in his discretion, require the trustees of any fund to file copies of any agreements of contracts entered into by the trustees of the fund or any other pertinent documents he may deem necessary.
f. An examination or review made pursuant to this section shall be conducted by State employees; provided, however, that if State employees are not able to conduct the examination or review, the commissioner may authorize and employ other persons, including, but not limited to, attorneys, appraisers, independent actuaries, independent certified public accountants, or other professionals or specialists as determined by the commissioner, to conduct or assist in the examination or review.
(cf: P.L.1995, c.74, s.3)
6. (New section) a. A joint self-insurance fund shall provide its members with quarterly reports covering the activities and status of the fund for that reporting period. The reports shall include, but not be limited to, the minutes, the administrator's or lead agency's report and a summation of fund activity, including 1[comments on] identification of1 previously reported claims and newly reported claims, and any of the information required by the fund trustees or the Commissioner of Banking and Insurance.
b. In addition to the reports required by section 7 of P.L.1983, c.108 (C.18A:18B-7), a joint self-insurance fund shall file with the Commissioner of Banking and Insurance and provide to its members, quarterly unaudited statements of the financial condition of the fund, including, but not limited to, a report of the outstanding liabilities by line of coverage showing the number of claims, amounts paid to date and current reserves for unpaid losses, claims and unearned assessments and a cash flow analysis of the fund and other information required by the commissioner by regulation, in a form acceptable to the commissioner within 60 days after the end of each calendar quarter.
1c. A joint self-insurance fund may satisfy the requirements to provide quarterly reports and unaudited statements to its members pursuant to subsections a. and b. of this section by distributing them in print format or by electronic mail, or by posting them in a printable format on the joint self-insurance fund's Internet website.1
7. (New section) An actuarial valuation of a joint self-insurance fund shall be performed when it changes or replaces its third party administrator.
8. This act shall take effect immediately.
