New Jersey § 34:15-120

§ 34:15-120.

a. Upon creation of the Insolvency Fund pursuant to the provisions of section 5 of

this act, 1 the association is obligated for payment of compensation under chapter 15 of Title

34 of the Revised Statutes to insolvent members' employees resulting from: (1) incidents

and injuries existing prior to the member becoming an insolvent member; and (2) incidents

and injuries occurring after the member has become an insolvent member, if the employee

makes timely claim for those payments according to procedures set forth by a court

of competent jurisdiction over the delinquency or bankruptcy proceedings of the insolvent

member. Such obligation includes only that amount due the injured worker or workers of the

insolvent member under chapter 15 of Title 34 of the Revised Statutes. In no event is the association obligated to a claimant in an amount in excess of

the obligation of the insolvent member. The association shall be deemed the insolvent member for purposes of chapter 15

of Title 34 of the Revised Statutes to the extent of its obligation on the covered

claims and, to that extent, shall have all rights, duties and obligations of the insolvent

member as if the member had not become insolvent. However, in no event shall the association be liable for any penalties or interest

or for compensation payments which were due before the member became an insolvent

member. b. The association may: (1) Employ or retain those persons necessary to handle claims and perform other duties

of the association. (2) Borrow funds necessary to effect the purposes of this act in accordance with the

plan of operation. (3) Sue or be sued. (4) Negotiate and become a party to those contracts as are necessary to carry out

the purposes of this act. (5) Purchase reinsurance as it determines necessary pursuant to the plan of operation. (6) Review all applicants for membership in the association. Prior to a final determination by the department as to whether or not to approve

any applicant for membership in the association, the association may issue opinions

to the department concerning any applicant, which opinions shall be considered by

the department prior to any final determination. (7) Charge fees to any member of the association to cover the actual costs of examining

the financial condition of that member. (8) Charge an applicant for membership in the association a fee sufficient to cover

the actual costs of examining the financial condition of the applicant. c. (1) To the extent necessary to secure funds for the payment of covered claims and

also to pay the reasonable costs to administer them, the association shall levy assessments

on its members. The assessment charged to each member shall be in the proportion that the member's

compensation payments during the 12-month period ending on the June 30th immediately

preceding the date of the assessment bear to the total compensation payments made

by all members during that period. The assessment levied against any member in any one year shall be in an amount not

exceeding 1.5 percent of the total compensation paid by the member during the 12-month

period ending on the June 30th immediately preceding the date of the assessment, except

that the association shall increase the assessment to not more than two percent each

year as needed to establish and sustain a prefunded reserve of $1,000,000. Assessments shall be administered by the board of directors in the manner specified

by the plan of operation. Each member so assessed shall have at least 30 days' written notice as to the date

the assessment is due and payable. The association shall levy assessments against any newly admitted member of the

association so that the basis of contribution of any newly admitted member is the

same as previously admitted members, provision for which shall be contained in the

plan of operation. (2) If, in any one year, funds available from such assessments, together with funds

previously raised, are not sufficient to make all the payments or reimbursements then

owing, the funds available shall be prorated, and the unpaid portion shall be paid

as soon thereafter as sufficient additional funds become available. (3) No State funds of any kind shall be allocated or paid to the association or any

of its accounts. d. The association shall make every reasonable effort and undertake all appropriate

actions to obtain from an insolvent member whatever funds are needed to pay compensation

due to employees of the insolvent member. 1

N.J.S.A. § 34:15-120.19.