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
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.