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.