P.O. Box 712, Stockholm, New Jersey 07460
November 17, 2008
To: All NJAIRE Member Companies:
This is to inform you of a change to the NJAIRE Procedure Manual that was approved by the Board of Directors, and is effective on November 13, 2008. The change is summarized below:
I. Procedure Manual
The Board of Directors established a procedure for the handling of surplus funds resulting from excess administrative assessments. Chapter 5.2.D (page 19) was amended to include the following:
If NJAIRE does not use the full amount of administrative assessments paid by member companies, NJAIRE will hold any excess monies until such time as the monies exceed $500,000. When the excess monies exceed $500,000, the excess will be used to offset the administrative assessments issued to member companies for the following budget year.
The Board of Directors felt it was desirable for the Exchange to hold a small amount of surplus administrative funds in order to prevent the need for issuing a supplemental assessment in the case that unforeseen circumstances caused actual expenses to exceed the budget. However, the Board felt it was appropriate to put an upper limit on how much surplus it maintained to fund unexpected expenses.
An electronic copy of the revised Procedure Manual is attached for your convenience. Please note that the revised document is also available on the NJAIRE web site, www.njaire.org.
If you have any questions, please contact me at email@example.com or 201-469-2323.
Business Analyst II
Insurance Services Office, Inc.
NJAIRE Central Processor