MCMJIF Bylaws - Definitions
1.01 For purposes of these Bylaws, unless the context requires otherwise, the following words and phrases shall have the meanings indicated. If no definition is given hereunder and a definition appears within N.J.A.C. 11:15-2.2, then such additional definitions shall be deemed to be incorporated hereunder.
"Actuary" means a person who is a Fellow in good standing of the Casualty Actuarial Society with three years recent experience in loss reserving; an associate in good standing of the Casualty Actuarial Society with five years recent experience in loss reserving; or an associate in good standing of the American Academy of Actuaries who has been approved as qualified for signing casualty loss reserve opinions by the Casualty Practice Council of the American Academy of Actuaries and who has seven years recent experience in loss reserving.
"Administrator" means a person, partnership, corporation or other legal entity engaged by the joint insurance fund commissioners or executive committee, as defined herein, to act as executive director to carry out the policies established by the joint insurance fund commissioners or executive committee and to otherwise administer and provide day-to-day management of the joint insurance fund. The Administrator may also be the lead agency, an employee of the Fund, a Fund member, or an independent contractor. Additionally, the Administrator/Executive Director may designate an administrative services organization to assist in the administration of the Fund with the consent and approval of the Fund Commissioners. Such organization shall enter into a separate agreement with the Fund, and any restrictions or obligations imposed on the Executive Director/Administrator by the Fund shall also apply to such administrative services organization, including the provisions of these By-laws and the Risk Management Plan, which apply to the Executive Director/Administrator.
"Allocated Claims Expense" means attorneys' fees, expert witness fees (i.e. engineering, physicians, etc.), medical reports, professional photographers' fees, police reports and other similar expenses.
"Automobile and Equipment Liability" means liability resulting from the use or operation of motor vehicles, equipment or apparatus owned by or controlled by the local unit or owned by or under the control of any subdivisions thereof, including its departments, boards, agencies, commissioners or other entities which the local unit may provide coverage for under N.J.S.A.40A:10-2.
"Bureau" means the Compensation Rating & Inspection Bureau, 60 Park Place, Newark, N.J. 07102. "Chairperson" means the chairperson of the Fund commission, elected by the commission pursuant to N.J.S.A. 40A:10-37.
"Commissioner" means the Commissioner of Banking and Insurance.
"Crime and Fidelity" means loss or theft of monies or securities, including blanket bond coverage of certain county or municipal officers and employees for faithful performance and discharge of their duties as provided under section 1 of P.L. 1967, c. 283 (C.40A:5-34.1).
"Department" means the Department of Banking and Insurance.
"Employer's Liability" means the legal liability of a public employer to pay damages because of bodily injury or death by accident or disease at any time resulting therefrom sustained by an employee arising out of and in the course of his or her employment by the public employer, which is not covered by a workers' compensation law.
"Excess Carrier" means an insurer that provides excess insurance or reinsurance to a Fund.
"Excess Insurance" means insurance purchased from an insurance company authorized or admitted in the State of New Jersey or deemed eligible by the Commissioner as a surplus lines insurer, or from any other entity authorized to provide such coverage in this State pursuant to law, covering losses in excess of an amount established between the joint insurance fund and the insurer up to limits of coverage set forth in the insurance contract on a specific per occurrence, or per accident, or annual aggregate basis. "Executive Committee" means a committee of Insurance Fund commissioners, as provided in P.L. 1983, c. 372 N.J.S.A. 40A:10-36 et seq.
"Fiscal Year" or "Fund Year" means the calendar year January 1 through December 31.
"Fund" means the Middlesex County Municipal Joint Insurance Fund.
"General Liability" means any and all liability which may be insured under the laws of the State of New Jersey, excluding workers compensation and employers liability.
"Hazardous Financial Condition" means that, based on its present or reasonably anticipated financial condition, a Fund, although not yet financially impaired or insolvent, is unlikely to be able:
- To meet obligations to claimants with respect ot known claims and reasonably anticipated claims; or
- To pay other obligations in the normal course of business.
"Incurred Claims" means claims which occur during a Fund year including claims reported or paid during the later period.
"Indemnity and Trust Agreement" means a written contract signed by and duly adopted by the members of the Fund under which each agrees to jointly and severally assume and discharge the liabilities of each and every party to such agreement arising from the participation in the Fund.
"Insolvent Fund" means a joint insurance fund which has been determined by a court of competent jurisdiction to be unable to pay its outstanding lawful obligations as they mature in the regular course of business, as it may be shown either by an excess of its required reserves and other liabilities over its assets or by its not having sufficient assets to reinsure all of its outstanding liabilities after paying all accrued claims owed by it, or for which, or for the assets of which, a receiver or liquidator, however entitled, has been appointed by a court of competent jurisdiction and authority, after the effective date of this subchapter.
"Insurer" means any corporation, association, partnership, reciprocal exchange, interinsurer, Lloyd’s insurer or other person engaged in the business of insurance pursuant to Subtitle 3 of Title 17 of the Revised Statutes. "Intertrust fund transfer" means an actual transfer of funds from one claim or loss retention fund account in a fiscal year to another account within the same fiscal year.
"Interyear fund transfer" means the transfer of funds from a claim or loss retention trust account for a fiscal year, to a claim or loss retention trust account of similar risk or liability for a different fiscal year.
"Joint Insurance Fund" means a group organized by two or more local units of government to establish an insurance fund for the purposes of insuring and/or self-insuring against liability, property damage, and worker compensation, to the extent and for coverages approved by the Commissioner pursuant to the authority of N.J.S.A. 40A:10-36 et seq, and this subchapter.
"Joint Insurance Fund commissioners" means local unit representatives chosen to represent those units in the Fund, as provided in N.J.S.A. 40A:10-36 et seq.
"Lead Agency" means a member of the joint insurance fund responsible for the custody and maintenance of the assets of the Fund and such other duties as may be designated by the joint insurance fund commissioners. The duties performed by a lead agency may include duties that may be performed by an administrator or servicing organization.
"Local Unit of Government" or "Local Unit" means a county, [municipality,] county school (pursuant to N.J.S.A. 18A:18B-8 and 40A:10-50), county college (pursuant to N.J.S.A. 18A:64A-25.40 and 40A:10-51), any contracting unit as defined in N.J.S.A. 40A:11-2 or boards of education of certain school districts, to the extent permitted pursuant to N.J.S.A. 40A:10-52 through 57.
"Manual Premium" means the Workers' Compensation premium computed by applying the manual rates established for appropriate classifications to the appropriate payrolls by classification in accordance with the "Manual" of the "Bureau".
"Member" means the governing body of any Local Unit who has, by resolution or ordinance agreed, and has executed the appropriate Resolution and Indemnity and Trust Agreement, to join the Fund pursuant to the requirements of Article II ("Membership") of these bylaws.
"Motor Vehicle and Equipment Liability" means liability resulting from the use or operation of motor vehicles, equipment or apparatus owned by or controlled by the participating municipality, or owned by or under the control of any subdivision thereof including its departments, boards, agencies or commissions for which an Insurance Fund may be established as authorized under N.J.S.A. 40A:10-36.
"Net Current Surplus" or "Surplus" means the amount of monies in a trust account established pursuant to N.J.A.C. 11:15-2.6(b)10 that is in excess of all costs, earned investment income, refunds made pursuant to N.J.A.C. 11:15-2.21, incurred losses and loss adjustment expenses and incurred but not reported reserves, including the associated loss adjustment expenses attributed to the fund net of any recoverable per occurrence or aggregate excess insurance or reinsurance for a particular year.
"Occurrence" means an accident, including continuous or repeated exposure to conditions which results in injury or damage neither expected nor intended from the standpoint of participant within the Fund.
"Probable Net Cost" means the estimated ultimate undiscounted cost of claims incurred during a Fund year plus the cost of allocated claims expense and other costs of operating the fund until all claims incurred during the Fund year are settled. "Producer" means any person engaged in the business of an insurance agent, insurance broker or insurance consultant as defined in N.J.S.A. 17:22A-1 et seq.
"Property Damage" means any loss or damage, however caused, on property, motor vehicles equipment or apparatus owned by the local unit or owned buy or under the control of any of its departments, boards, agencies, commissioners, or other entities which the local unit may provide coverage for under N.J.S.A. 40A:10-2.
"Secretary" means the secretary of the fund commission elected by the commission pursuant to N.J.S.A. 40A:10-37.
"Servicing Organization" means an individual, partnership, association or corporation, other than the administrator, that has contracted with the Fund to provide, on the Fund’s behalf, any function as designated by the fund commissioners including, but not limited to, actuarial services, claims administration, cost containment services, loss prevention/safety engineering services, legal services, auditing services, financial services, compilation and maintenance of the fund’s underwriting file, coordination and preparation of coverage documents, risk selection and pricing, excess insurance or reinsurance producer services, which include producer negotiations on behalf of the fund for excess insurance or reinsurance form an insurer, member assessment and fee development, report preparation pursuant to N.J.S.A. 40A:10-36 et seq and this subchapter, and such other duties as designated by the Fund.
"Unpaid Claims" or "Unpaid Losses" means case reserves and reserves for incurred but not reported claims attributed to the fund net of any recoverable per occurrence or aggregate excess insurance or reinsurance for a particular year.
"Workers’ Compensation" means any benefit and/or expenses payable under the workers’ compensation law.
"Workers' Compensation Law" means the provisions of N.J.S.A. 34:
