17:49A-7 - Plan of risk management - New Jersey Statutes

17:49A-7.    Plan of risk management
     The commissioners shall prepare, or cause to be prepared, a plan of risk management for the joint insurance fund.  The plan shall include, but not be limited to:

    a.   The perils or liabilities to be insured against;

    b.   Limits of coverage, whether self-insurance, direct insurance purchased from a commercial carrier, or reinsurance;

    c.   The amount of risk to be retained by the fund;

    d.   The amount of reserves to be established;

    e.   The contributions to be paid by each participating nonprofit corporation or Keys amendment facility, as the case may be;

    f.   Coverage to be purchased from a commercial insurer, if any;

    g.   Reinsurance to be purchased, if any, and the amount of premium therefor;  and

    h.   Such other procedures and information as the Commissioner of Insurance may require by rule or regulation.

    For purposes of this section "a plan of risk management" is a plan, and activities carried out under the plan, binding upon the participants in a joint insurance fund to reduce risk of loss with respect to a particular line of insurance protection or coverage provided by a fund. Plans of risk management also include the administration of one or more funds, including the processing and defense of claims brought against or on behalf of participants.

    L. 1987, c. 431, s. 7.