State Codes and Statutes

Statutes > New-jersey > Title-17 > Section-17-30b > 17-30b-7

17:30B-7.  Plan of operation;  submission by directors;  certification of approval;  enactment by commissioner;  amendments    a.  The directors of the association shall submit to the commissioner, within such time as he sets forth by regulation, for his review and approval, a  proposed plan of operation.  Such a proposed plan shall include provisions for:   assessment of all members of an amount necessary to finance a Joint Underwriting Association Fund;  notification to insureds regarding the assumption of their policies from the insolvent insurance companies; recoupment of unearned premiums for all insureds whose policies are assumed; procedures for processing applications from servicing carriers for reimbursement;  management of the association;  and such other provisions as may be deemed necessary by the commissioner to carry out the purposes of this act.

    b.  The proposed plan shall be reviewed by the commissioner and approved by  him if he finds that such plan fulfills the purposes set forth in section 2 a.  of this act.  In his review of the proposed plan the commissioner may consult  with the directors and the members of the association and any other individual  or organization.  If the commissioner approves the proposed plan he shall  certify such approval to the directors and said plan shall take effect at such  date as directed by the commissioner.  If the commissioner disapproves all or  any part of the proposed plan of operation, he shall return same to the  directors with a statement, in writing, of the reasons for his disapproval and  any recommendations he may wish to make.  The directors shall either accept within 5 days the commissioner's recommendation, or propose a new plan, which  shall be submitted to the commissioner within 10 days.  If the directors fail  to comply with the foregoing terms of this paragraph, the commissioner shall  promulgate a plan of operation and certify same to the directors.  Any such  plan promulgated by the commissioner shall take effect no later than 10 days  after certification to the directors.

    c.  The directors may, for good cause, amend the plan of operation at any time, subject to the approval of the commissioner.

    d.  The commissioner may review the plan of operation whenever he deems necessary and amend said plan after consultation with the directors.

     L.1974, c. 106, s. 7, eff. Sept. 19, 1974.