State Regulation

New Jersey has a reputation for implementing the most robust system of regulation of JIFs in the country. At least five state agencies regulate JIFs and HIFs.

  • Department of Banking and Insurance (DOBI): DOBI is responsible for technical insurance-related regulation. It requires extensive annual filings including budgets, audit statements, contracts and insurance and excess policies. Every five years, DOBI assigns a team of examiners to PERMA’s office for four to five months to review the financial records, meeting minutes, contracts, excess and reinsurance agreements and other critical documents. DOBI also audits a sample of claims and engages their actuary to render an independent opinion on the JIF’s reserves.
  • Department of Community Affairs (DCA): DCA focuses on JIF compliance with laws and regulations concerning governmental operations such as the Fiscal Affairs Act, Public Contracts Law, Local Government Officials Ethics Act, Open Public Meetings Act and the Open Public Records Act. DCA also receives copies of all filings made to DOBI and has joint authority concerning the approval of JIF bylaws and Plans of Risk Management.
  • New Jersey State Controller: JIFs are required to file any contract exceeding $2 million with the Controller and must seek prior approval for any contract that exceeds $10 million. JIFs are also required to file all financial audit reports with the Controller’s office.
  • New Jersey Department of Labor and Work Force Development and the New Jersey Department of Health: J.A. Montgomery Consulting works closely with members to help them comply with the regulations promulgated by DOL and DOH concerning employee safety. The JIFs also help members comply with various laws concerning employment practices such as the Law Against Discrimination (LAD) and the Conscientious Employee Protection Act (CEPA). PERMA developed and regularly updates a comprehensive employment practices risk control program that has been adopted by over half of the local units in the state.
  • New Jersey Department of Environmental Protection: The E-JIF provides technical engineering assistance and training to help members comply with DEP regulations.