Funding


New Jersey Property-Liability Insurance Guaranty Association


The Association has two primary sources of funds to fulfill its statutory obligations. The Association receives distributions from insolvent estates as reimbursement for payments made on behalf of those estates. The Association can also assess member companies. Upon approval of the Commissioner of the DOBI, assessments levied by the Association can be recouped by members through surcharges on policyholders.


New Jersey Surplus Lines Insurance Guaranty Fund


The Fund receives distributions from insolvent estates as reimbursement for payments made on behalf of those estates. Surplus lines insurers are required to make an initial one time payment of $25,000 into the Fund. In addition, the Fund is authorized to place a surcharge on surplus policy premiums. The surcharge has been inactive since 1993 but is subject to possible reenactment.


Workers' Compensation Security Fund


The WCSF is funded through assessments of workers’ compensation carriers authorized to transact the business of workers’ compensation insurance in this State and distributions from insolvent estates as reimbursement for payments made on behalf of those estates.


Unsatisfied Claim and Judgment Fund


The UCJF is funded through assessments of member companies writing automobile insurance in New Jersey. The UCJF also pursues the responsible uninsured motorists for reimbursement of payments made due to their failure to carry proper insurance.