{"data":{"id":"us-nj/n.j.-stat.-17b-27c-5","jurisdiction":"us-nj","citation":"N.J. Stat. § 17B:27C-5","heading":"Deposit, maintenance of cash, securities.","body":"5. a. A self-funded multiple employer welfare arrangement shall deposit and continuously maintain with a financial institution licensed in this State, cash or securities as defined in N.J.S. 17B:18-37, having an admitted asset value of not less than $200,000.  The deposit shall be held for the benefit and protection of all covered members of the self-funded multiple employer welfare arrangement.  The self-funded multiple employer welfare arrangement shall further maintain a cash reserve for loss in an amount established by a qualified actuary as being adequate to provide for all incurred losses including unpaid claims.\nb.\t A self-funded multiple employer welfare arrangement shall maintain aggregate stop-loss coverage, with a retention level of 125 percent of expected claims per year, including provisions to cover incurred, unpaid claims liability in the event of the termination or liquidation of the self-funded multiple employer welfare arrangement, and specific stop-loss coverage, with a retention level determined annually by a qualified actuary based on sound actuarial principles.  Any stop-loss contract maintained pursuant to this subsection shall contain a provision that the stop-loss insurer shall give the self-funded multiple employer welfare arrangement and the commissioner a minimum of 180 days' notice of cancellation or nonrenewal.  If the self-funded multiple employer welfare arrangement fails to secure replacement coverage within 90 days after receipt of the notice of cancellation or nonrenewal, the trustees of the self-funded multiple employer welfare arrangement shall provide for the orderly liquidation of the self-funded multiple employer welfare arrangement.\nL.2001, c.352, s.5; amended 2015, c.172, s.2.","path":["TITLE 17B INSURANCE"],"source_url":"https://pub.njleg.state.nj.us/statutes/STATUTES-TEXT.zip","current_through":"P.L.2025, c.405, and J.R.22","vintage":"","retrieved_at":"2026-08-27T17:54:13Z","sha256":"8ccc5f25dbf665a1ff84e41752398a685681fd953e0c49b6bbc531cc9e36b5ae","source_id":"us-nj","stale":true,"prev":"us-nj/n.j.-stat.-17b-27c-4","next":"us-nj/n.j.-stat.-17b-27c-6"},"notice":"GroundRules: Original legal text. Not legal advice."}