7.01 ANNUAL ASSESSMENT:

A. By November 15th of each year, the actuary shall compute the probable net cost for the upcoming Fund year by line of coverage and for each prior Fund year. The actuary shall include all budget items in these computations.

B. Each participating member of the Fund shall appropriate and pay to the Fund its assessments as required by the joint insurance fund. During the first year of operation of a joint insurance fund, these contributions shall be paid in full in accordance with N.J.A.C.11:15-2.15. Subsequent years' assessments shall be paid in three installments with 25% due on or before January 15, 25% due on or before May 15 and 50% due on or before August 1.

C. Each member's annual assessment shall consist of an amount allocated for the administrative account, plus a specific assessment to establish and/or replenish the claim or loss retention trust fund account for each type of coverage provided by the Fund and in which such member participates.

D. The total amount of each member's annual assessments to the joint insurance fund shall be certified by the joint insurance fund commissioners or the executive committee, if established, to the governing body of each participant at least one month prior to the beginning of the next fiscal year. As a condition of continued participation in the joint insurance fund each member shall pay the amount certified at such time and in such manner provided in the Fund's Bylaws.

E. Unless otherwise approved by the Commissioner of the Department,, the annual assessment of each Fund member funds providing for self-insurance of workers' compensation and employers' liability coverages shall be based upon the mandatory merit rating plan on file with the Commissioner. The Commissioner of the Department may withdraw his/her approval of any assessment not based upon the mandatory plan if he/she shall find that such assessment is unreasonable or inadequate for the members of the Fund to which it applies. In taking any action under this section, the Commissioner may seek assistance from the Fund commissioners, the executive committee or the Administrator.

F. If a member becomes a member of the Fund or elects to participate in a line of coverage after the start of the Fund Period, such participant's assessments and supplemental assessments shall be reduced in proportion to that part of the period which had elapsed.

G. Nothing contained in this section shall preclude the assessment and payment of supplemental assessments as provided in N.J.A.C 11:15-2.16.

7.02 SUPPLEMENTAL ASSESSMENTS:

A. The Fund commissioners or executive committee, if established, shall by majority vote levy upon the members additional assessments wherever needed or so ordered by the Commissioner to supplement the Fund's Claim, loss retention or administrative accounts to assure the payment of the Fund's obligations, as respects separately and independently of each other, each type of coverage offered by the Fund and in which a Fund member is participating.

1. The Fund shall assess each participating member an additional proportionate amount, as provided in the Fund's Bylaws and plan of risk management, or as directed by the Commissioner, to replenish claims or loss retention or administrative accounts.
2. All members shall be given thirty (30) days advance written notice of the Fund's intention to charge an additional assessment, and the Fund shall conduct a hearing before adopting the supplemental assessment.
3. Members shall have forty-five (45) days to pay the Fund from the date any supplemental assessment is adopted. The municipalities shall provide such additional assessments in accordance with the provisions of the Local Budget Law (N.J.S.A.40A:4-1 et seq.).

B. The Fund shall submit to the Commissioner of the Department and the Commissioner of the Department of Community Affairs a report of the causes of the Fund's insufficiency, the assessments necessary to replenish it and the steps taken to prevent a reoccurrence of such circumstances.

C. Insolvency and/or Bankruptcy of Fund Members: The insolvency or bankruptcy of a member does not release the Fund, or any other member, of joint and several liability for the payment of any claim incurred by the member during the period of its membership including, but not limited to, being subject to and liable for supplemental assessments.

7.03 FAILURE OR REFUSAL TO PROVIDE REQUIRED ASSESSMENTS:

Should any member fail or refuse to pay its assessments or supplemental assessments, or should the Fund fail to assess monies required to meet its obligations, the Chairperson, or, in the event of his or her failure to do so, the custodian of the Fund's assets, shall notify the Commissioner of the Department and the Commissioner of the Department of Community Affairs. Past due assessments shall bear interest at the rate of interest to be established annually by the commissioners or executive committee, if one is established.