Bill

Bill > S538


NJ 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
In Committee
01/09/2024
Crossed Over
Passed
Dead
01/12/2026

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 Department of Banking and Insurance (DOBI) to provide compensation to members of self-funded multiple employer welfare arrangements (MEWAs) under specific circumstances. A MEWA is a type of employee benefit plan that provides health benefits to employees of multiple employers. If a court orders the rehabilitation, liquidation, conservation, or dissolution of a MEWA and determines that this action is not due to the MEWA's own mismanagement, the Commissioner of Banking and Insurance will be required to compensate MEWA members for 60% of any assessment imposed by the court to cover outstanding and projected claims. The court, when making its determination about mismanagement, must consider factors outside the MEWA's control, such as epidemics, pandemics, or natural or human-made disasters.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Introduced in the Senate, Referred to Senate Commerce Committee (on 01/09/2024)

bill text


bill summary

Loading...

bill summary

Loading...
Loading...