New Jersey Statutes 17B:32A-9. Plan of operation
Terms Used In New Jersey Statutes 17B:32A-9
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
(2) If the association fails to submit a suitable plan of operation within 120 days following the effective date of P.L.1991, c.208 (C. 17B:32A-1 et seq.) or if at any time thereafter the association fails to submit suitable amendments to the plan, the commissioner shall adopt such plan or amendments necessary to effectuate the provisions of P.L.1991, c.208 (C. 17B:32A-1 et seq.). The plan or amendments shall continue in force until modified by the commissioner or superseded by a plan submitted by the association and approved by the commissioner.
b. All member insurers shall comply with the plan of operation.
c. The plan of operation shall, in addition to requirements enumerated elsewhere in P.L.1991, c.208 (C. 17B:32A-1 et seq.):
(1) establish procedures for handling the assets of the association;
(2) establish the amount and method of reimbursing members of the board of directors under subsection c. of section 6 of P.L.1991, c.208 (C. 17B:32A-6);
(3) establish regular places and times for meetings, including telephone conference calls, of the board of directors;
(4) establish procedures for records to be kept of all financial transactions of the association, its agents, and the board of directors;
(5) establish the procedures whereby selections for the board of directors will be made and submitted to the commissioner;
(6) establish any additional procedures for the imposition of assessments under section 8 of P.L.1991, c.208 (C. 17B:32A-8);
(7) contain additional provisions necessary or proper for the execution of the powers and duties of the association;
(8) establish procedures whereby a director may be removed for cause, including in the case where a member insurer director becomes an impaired or insolvent insurer; and
(9) require the board of directors to establish a policy and procedures for addressing conflicts of interests.
d. The plan of operation may provide for the delegation of any or all powers and duties of the association, except those set forth in paragraph (3) of subsection m. of section 7 of P.L.1991, c.208 (C. 17B:32A-7) and section 8 of P.L.1991, c.208 (C. 17B:32A-8), to a corporation, association, or other organization which performs or will perform functions similar to those of the association, or its equivalent, in two or more other states. Such a corporation, association, or organization shall be reimbursed for any payments made on behalf of the association and shall be paid for its performance of any function of the association. A delegation under this subsection d. shall take effect only with the approval of both the board of directors and the commissioner, and may be made only to a corporation, association, or organization which extends protection not substantially less favorable or effective than that provided by P.L.1991, c.208 (C. 17B:32A-1 et seq.).
L.1991,c.208,s.9; amended 2022, c.98, s.8.