N.J. Admin. Code § 11:23-3.4

Current through Register Vol. 57, No. 1, January 6, 2025

Section 11:23-3.4 - Fiduciary capacity of third party administrator; fidelity bond to be maintained

(a) A third party administrator shall be deemed to act in a fiduciary capacity on behalf of the benefits payer in the receipt and transmittal of the funds of a benefits payer, and shall have all responsibility attendant to a fiduciary as established by law.

(b) An administrator shall maintain in force a fidelity bond in its own name on its directors, officers, partners and employees.

(c) The minimum amount of the fidelity bond shall be the greater of $ 100,000 or one percent of the total amounts received from benefits payers in the previous calendar year for the purpose of paying claims on behalf of benefits payers.

N.J. Admin. Code § 11:23-3.4