N.J. Admin. Code § 12:21-2.26

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

Section 12:21-2.26 - 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 this subchapter.

(b) 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.