Unsatisfied Claim and Judgment Fund


The Unsatisfied Claim and Judgment Fund (“UCJF”) was established in 1952 to pay the damages of victims injured in a hit and run accident or an accident involving an uninsured motorist. The payment of excess medical benefits (“EMBs”) above $75,000 to insurance carriers on certain personal injury protection (“PIP”) claims was later added in an effort to control medical expenses by providing a level of reinsurance for auto policies. The Unsatisfied Claim and Judgment Fund Law, N.J.S.A. 39:6-61et seq., governs the operations of the UCJF.


Pursuant to statute, the UCJF can assess member companies writing automobile insurance in New Jersey. These companies cannot recover their assessments through policy surcharges.


In 2003, the New Jersey Automobile Insurance Competition and Choice Act transferred responsibility for the administration of the UCJF to the New Jersey Property-Liability Insurance Guaranty Association (“Association”). As of January 1, 2004, the role of the UCJF was expanded to provide private passenger and commercial pedestrian PIP coverage when other coverage is not available. At the same time, EMB payments ceased and the responsibility for the run-off of EMB claims was transferred to the Association.