New Jersey Administrative Code
Title 11 - INSURANCE
Chapter 4 - ACTUARIAL SERVICES
Subchapter 56 - SELF-FUNDED MULTIPLE EMPLOYER WELFARE ARRANGEMENTS AND INSURED MULTIPLE EMPLOYER ARRANGEMENTS
Section 11:4-56.12 - Violations and penalties

(a) Persons failing to comply with any of the requirements of this subchapter shall be subject to revocation or suspension of a certificate of registration and/or a penalty of not more than $ 1,000 for a first offense, and not more that $ 5,000 for each subsequent offense pursuant to 17B:27C-10.

(b) A self-funded MEWA that fails to submit an application for registration, and covers employers domiciled in New Jersey or who have their principal headquarters or principal administrative offices in New Jersey, shall terminate coverage of such employers by February 7, 2005, and shall provide 180 days notice of termination to affected employers.

(c) A self-funded MEWA whose application for initial or subsequent annual registration is denied or withdrawn, but that covers employers domiciled in New Jersey or who have their principal headquarters or principal administrative office in New Jersey, shall terminate coverage of such employers within eight months of the date of withdrawal or denial and shall provide 180 days notice of termination to affected employers.

(d) If the Commissioner rejects a complete initial registration application filed pursuant to 11:4-56.3, or a subsequent annual registration application filed pursuant to 11:4-56.4, the Department shall advise the applicant in writing that the registration request is denied; shall specify the reasons for the denial; and shall advise the applicant of the right to request a contested case hearing as defined at 1:1-2.1, and of the procedures for filing the request.

2. The request for a hearing shall include a statement of the legal and factual basis upon which the applicant disagrees with the denial of either an initial or subsequent annual registration, and all documentation in support thereof.

3. Upon receipt of a request for a hearing on a registration denial, the Department shall review the application and attachments, the Department's records and any additional information submitted, and shall determine whether the registration will be issued.