New Jersey Property-Liability
Insurance Guaranty Association (“NJPLIGA”)

established 1974
Man holding umbrella over paper family

NJPLIGA was established in 1974 to provide a safety net for policyholders and claimants of insolvent property-casualty insurance companies by providing statutory benefits to insureds and claimants of such insolvent companies.

The Association is a private, non-profit, unincorporated legal entity

established pursuant to the New Jersey Property-Liability Insurance Guaranty Association Act, N.J.S.A. 17:30A-1 et seq. (“NJPLIGA Act”). The NJPLIGA Act requires all insurance companies licensed to write property-casualty insurance in New Jersey to be members of the Association and contribute funds for its operations.

In New Jersey, an insurance company may be declared insolvent upon the application of the Commissioner of the New Jersey Department of Banking and Insurance and the Order of a court of competent jurisdiction in this State or the state in which the property-casualty insurer was domiciled. Once determined to be insolvent, the Association is authorized, by statute, to administer the claims of policyholders and claimants.

NJPLIGA has two primary sources of funds to fulfill its statutory obligations. First, the Association receives distributions from insolvent estates as reimbursement for payments made on behalf of those estates. Second, the Association can assess member companies which may then be authorized by the Department of Banking and Insurance to recover their assessments through surcharges on the policies issued to New Jersey residents.

In 2003, the New Jersey Automobile Insurance Competition and Choice Act transferred responsibility to the Association for the administration of the run-off of the personal injury protection (“PIP”) claims of the New Jersey Automobile Full Insurance Underwriting Association (“JUA”) and the Market Transition Facility.

The Association is also responsible for reimbursing insurance carriers handling certain excess medical benefits (“EMBs”) above $75,000 paid on PIP claims. This responsibility is only applicable to policies issued or renewed prior to January 1, 2004.

Insolvency Process

View More

Public Notices

View All Public Notices