Bill
Bill > S538
NJ S538
Requires DOBI to provide compensation to members of self-funded multiple employer welfare arrangements under certain circumstances.
summary
Introduced
01/09/2024
01/09/2024
In Committee
01/09/2024
01/09/2024
Crossed Over
Passed
Dead
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill requires DOBI to provide compensation to members of self-funded multiple employer welfare arrangements (MEWAs) under certain circumstances. Under the bill, the Commissioner of Banking and Insurance will be required to compensate MEWA members 60 percent of the value of any assessment imposed by the State Superior Court to pay any incurred but unpaid claims and projected claims, if the court determines that the rehabilitation, liquidation, conservation or dissolution of the MEWA is not due to the mismanagement of the MEWA itself. In making a determination of whether the MEWA's liquidation, conservation, rehabilitation or dissolution is not due to the MEWA's own mismanagement, the court shall consider the impact of factors beyond the MEWA's control, including, but not limited to, an epidemic or pandemic or a natural or human-made disaster or emergency.
AI Summary
This bill requires the New Jersey Department of Banking and Insurance (DOBI) to provide compensation to members of self-funded multiple employer welfare arrangements (MEWAs) under certain circumstances. If a MEWA is ordered to be rehabilitated, liquidated, conserved, or dissolved, and the court determines that this is not due to the MEWA's own mismanagement, the DOBI Commissioner must compensate MEWA members for 60% of the value of any assessment imposed by the court to pay outstanding claims. In making this determination, the court must consider factors beyond the MEWA's control, such as an epidemic, pandemic, or natural or human-made disaster. The bill also provides details on the assessment liability of MEWA members and the required notice that must be provided to employers and employees who obtain coverage from a MEWA.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Commerce Committee (on 01/09/2024)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/S538 |
| BillText | https://pub.njleg.gov/Bills/2024/S1000/538_I1.HTM |
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