Current through Register Vol. 56, No. 6, March
18, 2024
(a) When the
Commissioner determines pursuant to N.J.S.A. 17B:32B-9e that payment of the
assessment would endanger the ability of the member organization to fulfill its
contractual obligations or, based on indicia that relate to the ability to pay
the assessment by the member organization, would place it in an unsafe or
unsound financial condition, the Commissioner shall notify the Association of
such finding and direct the Association to exempt, abate or defer the
obligation of the member organization, as set forth in (b) below. If the
Commissioner decides to defer, in whole or in part, a member organization's
obligation to pay assessments, the member shall remain liable to the
Association for the amount deferred. The Commissioner shall find that a member
is or would be unable to meet its contractual obligations or be placed in an
unsafe or unsound financial condition if:
1.
The member has been placed in rehabilitation or liquidation pursuant to
17B:32-31 et seq. or such similar
law of the member's state of domicile;
2. The member has been placed under
administrative supervision pursuant to
17:51A-1 et seq. or such similar
law of the member's state of domicile; or
3. The Commissioner finds based solely on
indicia of N.J.A.C. 11:2-27 that relate to the ability to pay the assessment
that the member is or would be placed in a hazardous financial
condition.
(b) If the
Commissioner determines that relief should be granted, the member
organization's obligation shall be exempted, abated or deferred, as follows:
1. Except as provided at (b)2 below, the
Commissioner shall in all cases direct the Association that the member's
obligation shall be deferred pending a quarterly review of the member's
financial condition. The deferral shall be deemed to be an exemption two years
from the date the obligation was originally due, unless the Commissioner, prior
to that date, determines that the member's financial condition has improved
such that payment of the assessment, or a portion thereof, will not result in
the member being or becoming in a hazardous financial condition. If a member is
required to pay a portion of its obligation prior to the expiration of the
two-year period, the remainder shall be deferred, and shall be deemed exempt at
the expiration of the two-year period in the same manner as provided in this
paragraph for deferred obligations.
2. The Commissioner shall direct the
Association that the member organization's obligation be exempted, and thus no
obligation thereafter shall be deemed to exist for the particular obligation
for which the exemption was granted, if the member is in liquidation or
rehabilitation pursuant to
17B:32-31 et seq., or similar
statutes of the member's state of domicile, at the time the request is made. An
exemption granted under this paragraph shall be for the entire obligation and
no obligation thereafter shall exist for the particular obligation for which
the exemption was granted; provided that the determination whether to grant an
exemption from a future obligation shall be considered at the time such
obligation becomes due based on the member's financial condition at that
time.
3. The Commissioner shall
direct that the member's obligation to pay the full amount of the assessment be
abated if he or she determines that payment of some amount will not result in
the member being or becoming in a hazardous financial condition. The amount
which is not abated shall be deferred in the same manner provided by (b)1
above.
