New Jersey § 34:15-120

§ 34:15-120.

a. There is created a nonprofit entity to be known as the “New Jersey Self-Insurers

Guaranty Association.” All self-insurers shall be members of the association as a condition of their authority

to self-insure in this State. The association shall perform its functions under a plan of operation as established

and approved under section 6 of this act 1 and shall exercise its powers and duties through a board of directors as established

under section 3 of this act. 2 b. A member may voluntarily withdraw from the association when the member voluntarily

terminates the self-insurance privilege and pays all assessments due to the date of

that termination. However, the withdrawing member shall continue to be bound by the provisions of

this act relating to the period of its membership and any claims charged pursuant

thereto. A withdrawing member shall also be required to provide to the department upon withdrawal,

and at 12-month intervals thereafter, satisfactory proof that it continues to meet

the standards of R.S. 34:15-77 in relation to claims incurred while the withdrawing member exercised the privilege

of self-insurance. Such reporting shall continue until the withdrawing member satisfies the department

that there is no remaining value to claims incurred while the withdrawing member was

self-insured. If during this reporting period the withdrawing member fails to meet the standards

of R.S. 34:15-77 , the withdrawing member shall thereupon, and at six-month intervals thereafter, provide

to the department and the association the certified opinion of an independent actuary

who is a member of the American Society of Actuaries of the actuarial present value

of the determined and estimated future compensation payments of the withdrawing member

for claims incurred while it was a self-insurer, using a discount rate of four percent. With each such opinion, the withdrawing member shall deposit with the department

security in an amount equal to the value certified by the actuary and of a type that

is acceptable for the purposes of R.S. 34:15-77 . The withdrawing member shall continue to provide such opinions and to provide such

security until such time as the latest opinion shows no remaining value of claims. The association has a cause of action against a withdrawing member, and against

any successor of a withdrawing member, who fails to timely provide the required opinion

or who fails to maintain the required deposit with the department. The association shall be entitled to recover a judgment in the amount of the actuarial

present value of the determined and estimated future compensation payments of the

withdrawing member for claims incurred during the time that the withdrawing member

exercised the privilege of self-insurance, together with reasonable attorney's fees. For purposes of this section, the “ successor of a withdrawing member ” means any person, business entity, or group of persons or business entities, which

holds or acquires legal or beneficial title to the majority of the assets or the majority

of the shares of the withdrawing member. 1

N.J.S.A. § 34:15-120.20. 2

N.J.S.A. § 34:15-120.17.