10.01 ESTABLISHMENT OF TRUST ACCOUNTS:
A. A separate Trust Account shall be established in accordance with N.J.A.C. 11:15-2.6 (b) 10 for each type of insurance coverage offered by the Fund. Each Trust Account shall be separate and inviolate of each other and may not be attached by or transferred to another Trust Account of the Fund.
B. By resolution, the Fund shall designate a public depository for its monies pursuant to N.J.S.A. 40A:5- 14.
C. The Fund shall establish a separate trust Fund account from which monies shall be disbursed solely for the payment of claims, allocated claim expenses and excess insurance premiums for each line of coverage by Fund period. Such accounts shall be designated as claims or loss retention Fund accounts. Other than for claims, allocated claims expense or excess insurance premiums, no transfers or withdrawals may be made from a claim or loss retention account except for intertrust fund transfers in accordance with N.J.A.C. 11:15-2.13.
D. The Fund shall also establish an administrative account which shall be utilized for payment of the Fund's general operating expenses, loss prevention activities, data processing services, and general legal expenses. This account may include commingled contributions but subject to separate accounting of expenses by each type of coverage offered by the Fund.
10.02 INVESTMENTS:
Investments shall be under the direction of the Custodian in accordance with the following;
A. Account balances shall be invested to obtain the maximum interest return practical. All investments shall be in accordance with the Fund's cash management plan and consistent with the statutes and rules governing the investment of public Funds by local governments in accordance with N.J.S.A. 40A:10- 10b. Orig. 8/86 Rev. 1/93 Rev. 1/96 Rev. 4/99 Rev. 5/01 Proposed MCMJIF.BYL. 29
B. The investment and interest income earned by the investment of the assets of each claim or loss retention account shall be credited to each such account by Fund year. C. The investment and interest income earned by investment of the assets of the administrative account shall be credited to that account. 10.03 DISBURSEMENTS: A. Prior to any commitment or agreement requiring the expenditure of monies, the custodian of the Fund's assets shall certify as to the availability of sufficient unencumbered monies to fully pay all charges or commitments to be accepted. B. All disbursements, payments of claims or expenditure of monies must be approved by a majority vote of the Fund's commissioners, (or executive committee if established.)
C. Notwithstanding A and B above, the Fund may provide for the expeditious resolution of certain claims by designating the Fund's Administrator as a "certifying and approving officer" pursuant to N.J.S.A. 40A:5-17. The Fund may authorize the "certifying and approving officer" to approve for payment any or specified claims in an amount not to exceed an amount approved by the commissioners in the plan of risk management. The Fund shall establish such other procedures and restrictions on the exercise of this authority as the Fund deems appropriate.
D. Upon approval, the certifying and approving officer shall certify the amount and particulars of such approved claims to the custodian of the Fund's assets, directing that a check for payment be prepared.
E. Each month, the certifying and approving officer shall prepare a report of all claims approved since the last report, detailing the nature and the amount of the claim, the payee, the reasons supporting payment and any other pertinent information. This report shall be reviewed and approved or rejected by a majority vote of the Fund's commissioners or executive committee at their next regularly scheduled meeting.
F. All requests for payments must be accompanied by a detailed bill of items or demand, specifying particularly how the bill or demand is made up, with certification of the party claiming payment that it is correct, and must carry the certification of some officer or duly designated agent or employee of the Fund having knowledge of the facts that the goods have been received by, or the services rendered to, the Fund. In the case of claims or losses to be charged against any Trust Account, the Fund's claims administrator shall certify as to the claims correctness and validity.
G. All claims shall be paid by check. Checks shall be signed by two persons so designated by the joint insurance Fund commissioners or executive committee, if one is established.
H. All claims or other disbursements approved for payment by the Fund shall be recorded in a claims register maintained by the custodian of the Fund's assets.