New Jersey § 34:15-120

§ 34:15-120.

a. There is hereby created a fund which shall be known as the “uninsured employer's

fund” to provide for the payment of awards against uninsured defaulting employers who fail to provide compensation to employees or their beneficiaries in accordance with the provisions of the workers' compensation law, R.S. 34:15-1 et seq . The fund shall be administered, maintained, and disbursed by the Commissioner of Labor

as hereinafter provided. b. (1) For the purpose of establishing and maintaining this fund, the Commissioner of Labor shall impose on January 1, 1989 and on the first day of

each year thereafter, except as provided below, an annual surcharge upon each workers'

compensation policyholder and employer's liability insurance policyholder and each

self-insured employer insured pursuant to R.S. 34:15-77 . Each workers' compensation and employer's liability insurance policyholder and self-insured

employer shall be liable for payment of the annual surcharge in accordance with the

provisions of this section and all regulations promulgated pursuant thereto. The annual surcharge imposed under this section shall apply to all workers' compensation

and employer's liability insurance policies written or renewed or, in the case of

self-insured employers, to coverage provided on or after January 1, 1989. However, the surcharge shall not apply: to any reinsurance or retrocessional transaction;

to the State or any political subdivision thereof which acts as a self-insured employer;

or to any workers' compensation endorsement required pursuant to section 1 of P.L.1979,

c. 380 ( C. 17:36-5.29 ). If the Commissioner of Labor determines, pursuant to paragraph (2) of this subsection

b., that the “uninsured employer's fund” will have to its credit a sum in excess of

$500,000.00 at the end of any calendar year, the annual surcharge shall be suspended

for the next following year and its collection not resumed until the calendar year

immediately following any calendar year in which the balance in the fund is reduced

below $500,000.00. (2) For the calendar year 1989, the total amount of the surcharge levied by the commissioner

shall be $500,000.00. On September 1 of 1989 and of each year thereafter, the Commissioner of Labor shall

estimate the amount of benefits that have been paid and will be paid from the “uninsured

employer's fund” during that calendar year, and shall calculate in consultation with

the Commissioner of Insurance, the total amount of the annual surcharge for the “uninsured

employer's fund” to be levied during the next following calendar year upon all workers'

compensation and employer's liability insurance policyholders and self-insured employers

pursuant to paragraph (1) of this subsection b. The total amount of the annual surcharge shall equal 150% of the moneys estimated

by the Commissioner of Labor to be payable from the “uninsured employer's fund” during

the calendar year preceding the year during which the annual surcharge will be imposed. (3) The total amount of the annual surcharge calculated pursuant to paragraph (2)

of this subsection b. shall be added to the aggregate annual surcharge amount to be

levied upon and apportioned among all workers' compensation and employer's liability

policyholders and self-insured employers pursuant to R.S. 34:15-94 , and be levied and apportioned in the same manner as the annual surcharge for the

Second Injury Fund as provided in R.S. 34:15-94 . The surcharge to be collected from policyholders and self-insured employers pursuant

to this section shall, however, be stated separately on the policy or billing statement

and the amount of the surcharge as applied pursuant to this section shall not be subject

to reduction for special adjustment and supplemental benefits paid or payable under

the workers' compensation law, R.S. 34:15-1 et seq. (4) As used in this subsection, “ policyholder ” means a holder of a workers' compensation and employer's liability insurance policy

issued by an insurer that is a domestic, foreign or alien mutual association or stock

company writing workers' compensation or employer's liability insurance on risks located

in this State and subject to premium taxes pursuant to P.L.1945, c. 132 ( C. 54:18A-1 ). “ Self-insured employer ” means an employer which self-insures for workers' compensation or employer's liability

insurance pursuant to the provisions of R.S. 34:15-77 . (5) All moneys collected pursuant to this section shall be deposited in the “uninsured

employer's fund.” Collection of the annual surcharge shall be under the authority of the Commissioner

of Labor as defined in R.S. 34:15-94 . c. The Director of the Division of Workers' Compensation upon rendering a decision with respect to any claim for compensation under chapter

15 of Title 34 of the Revised Statutes that the employer liable therefor has failed

to secure the payment of compensation with respect to a claim in accordance with R.S. 34:15-71 or R.S. 34:15-72 , shall impose a penalty of $1,000.00 against the employer and direct its payment into the “uninsured employer's fund ” in connection with each such claim. The director shall also impose an additional assessment of 15% of the award or awards

made in each claim . This additional assessment shall not exceed, however, the sum of $5,000.00 on any one claim, and shall be paid into the “uninsured employer's fund. ” If the employer fails to pay these assessments into the fund within 10 days after date of mailing of notice

thereof to him, this shall constitute a default in payment of compensation due pursuant to the provisions

of the workers' compensation law, R.S. 34:15-1 et seq. , and judgment therefor shall be entered in accordance therewith . All sums collected from an uninsured defaulting employer with respect to any claim for compensation referred to in this section but

not payable from the fund, whether such collection is made prior or subsequent to

entry of judgment against the employer, shall be deemed in payment of and applicable first in satisfaction of any

compensation and benefits due from the employer with respect to the claim and security demand, if any, in connection therewith and only when the obligations are satisfied in full shall the balance of said sums collected, if any,

be deemed payment in satisfaction of and applicable to the assessments above prescribed

in this section. All sums recovered from uninsured defaulting employers on judgments entered for failure to pay assessments as hereinafter provided

and for failure to pay compensation and benefits which were paid from the “uninsured employer's fund,” shall upon recovery be paid into that fund.