Current through Register Vol. 56, No. 18, September 16, 2024
(a) Any
certificate holder which applies for renewal shall submit the following so that
it is received by the Commissioner not later than 60 days prior to the
expiration of its current certificate:
1. A
completed "Statement by Employer Exempted From Insuring Liability For
Compensation" as set forth in Exhibit D in the Appendix incorporated herein by
reference;
2. A supplementary
statement of outstanding death or disability claims as set forth in Exhibit E
in the Appendix incorporated herein by reference for the calendar year
immediately preceding the expiration date of the certificate;
i. The certificate holder shall provide the
name, address and telephone number of the person who actually completed the
supplementary statement, and shall provide the location of the claim records
utilized in the preparation of the statement.
3. A copy of the certificate of renewal of
excess insurance;
4. A financial
statement for the fiscal year immediately preceding the expiration date of the
certificate which is certified by an independent certified public accountant to
present fairly, in accordance with generally accepted accounting principles,
and statutory accounting principles, where applicable, the financial condition
of the certificate holder;
5. A
certification that the certificate holder recognizes that it may be subject to
examination by the Commissioner as required pursuant to (e) below;
6. The renewal fee as set forth in
11:1-32.4(b)13;
and
7. Any other information that
is materially different from the information provided in the original
application or from the information provided in the last renewal
period.
(b) In addition
to the renewal fee set forth in (a)6 above, upon the initial renewal of its
certificate the certificate holder shall be assessed and shall pay upon demand
the amount necessary to reimburse the Department for expenses incurred in
obtaining a risk assessment report on the certificate holder from a rating
agency as determined by the Commissioner.
1.
The requirement in (b) above shall not apply to any certificate holder that was
required to submit a risk assessment report as part of the initial application
pursuant to
11:2-33.3(f).
2. After the initial submission of the risk
assessment report pursuant to
11:2-33.3(f) or
33.4(b), the Department may obtain a risk assessment report on the certificate
holder and assess the certificate holder the costs of obtaining such report as
set forth herein if the Commissioner determines that the certificate holder's
financial condition may have deteriorated, or an event occurs which is
reasonably likely to cause the certificate holder's financial condition to
deteriorate as provided at (e) below.
(c) After the submission of the application
for renewal, the Commissioner may require a surety bond, or an increase in the
penal sum of an existing surety bond, in an amount determined by the
Commissioner if he or she deems it necessary to ensure that the certificate
holder satisfies the requirements for the issuance of a certificate set forth
in 34:15-77 and this
subchapter.
(d) Upon approval of
the application for renewal, the Commissioner shall issue a new
certificate.
(e) If the
Commissioner determines that the certificate holder's financial condition may
have deteriorated, or an event occurs which is reasonably likely to cause the
certificate holder's financial condition to deteriorate, he or she may conduct
such further examination of the certificate holder as he or she deems necessary
to ensure that the certificate holder continues to satisfy the requirements for
the issuance of a certificate set forth in
34:15-77 and this subchapter.
1. In determining whether to conduct such an
examination pursuant to this section, the Commissioner shall consider the
following factors, without limitation:
i. A
major loss suffered by the certificate holder over the previous year or a trend
of losses over several years;
ii. A
significant decrease in the certificate holder's bond rating over the previous
year or a trend of decreases over the past several years;
iii. A significant increase in claims
payments by the certificate holder to employees; or
iv. Major environmental litigation or
asbestosis litigation to which the certificate holder has or may become
subject.
2. The
examination may consist of an examination at the certificate holder's offices
conducted by the Commissioner's designee; a review of such additional
information as the Commissioner may request, including, but not limited to, a
risk assessment report as set forth in (b) above, and a statement of opinion by
a qualified actuary attesting to the adequacy of reserves for outstanding death
or disability claims that meets the requirements of N.J.A.C. 11:1-21; or
both.
3. The costs of any
examinations shall be borne by the certificate holder.
