17:22-6.74 Powers, duties and obligations of the Surplus Lines Insurance Guaranty Fund.
612 words·~3 min read·
/nj/title-17/chapter-22/17-22-6-74·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
5. a. The fund shall:
(1)Be obligated to the extent of the covered claims against an insolvent insurer incurred prior to or 30 days after the determination of insolvency, or before the policy expiration date, if less than 30 days after that determination, or before the policyholder replaces the policy or causes its cancellation, if he does so within 30 days of the determination. The fund's obligation for covered claims shall not be greater than $300,000 per occurrence, subject to any applicable deductible and self-insured retention contained in the policy. The commissioner may pay a portion of or defer the fund's obligations for covered claims based on the moneys available in the fund. In no event shall the fund be obligated to a policyholder or claimant in excess of the limits of liability of the insolvent insurer stated in the policy from which the claim arises. Any obligation of the fund to defend an insured shall cease upon the fund's payment or tender of an amount equal to the lesser of the fund's covered claim statutory limit or the applicable policy limit;
(2)Be deemed the insurer to the extent of its obligation on the covered claims and to such extent shall have all rights, duties, and obligations of the insolvent insurer as if the insurer had not become insolvent;
(3)Assess member insurers in accordance with section 6 of this act in amounts necessary to pay:
(a)Obligations of the fund under paragraph
(1)of this subsection,
(b)Expenses of handling covered claims,
(c)Any other expenses incurred in the implementation of the provisions of this act;
(4)Investigate claims brought against the fund; and adjust, compromise, settle, and pay covered claims to the extent of the fund's obligation; and deny all other claims; and may review settlements, releases and judgments to which the insolvent insurer or its policyholders were parties to determine the extent to which the settlements, releases and judgments may be properly contested;
(5)Notify those persons as the commissioner directs under section 8 of this act;
(6)Handle claims through the association's employees or representatives, or through one or more insurers or other persons designated as servicing facilities;
(7)Pay the other expenses of the association in administering the provisions of this act; and
(8)(Deleted by amendment, P.L.2004, c.165.)
(9)(Deleted by amendment, P.L.2017, c.97)
(10)On or before June 30, 2017, transfer $8,000,000 to the General Fund.
b. The fund may:
(1)Sue or be sued;
(2)Negotiate and become a party to those contracts which are necessary to carry out the purpose of this act;
(3)Perform those other acts which are necessary or appropriate to effectuate the purpose of this act;
(4)(Deleted by amendment, P.L.2002, c.30.)
(5)With the approval of the commissioner, borrow and separately account for moneys from any source, including but not limited to the New Jersey Property-Liability Insurance Guaranty Association and the Unsatisfied Claim and Judgment Fund, in such amounts and on such terms as the New Jersey Property-Liability Insurance Guaranty Association may determine are necessary or appropriate to effectuate the purposes of P.L.2003, c.89 (C.17:30A-2.1 et al.) in accordance with the association's plan of operation; and
(6)Make loans, in such amounts and on such terms as the association may determine are necessary or appropriate, to the New Jersey Property-Liability Insurance Guaranty Association in accordance with the provisions of the "New Jersey Property-Liability Insurance Guaranty Association Act," P.L.1974, c.17 (C.17:30A-1 et seq.) and the "Unsatisfied Claim and Judgment Fund Law," P.L.1952, c.174 (C.39:6-61 et seq.).
L.1984, c.101, s.5; amended 1984, c.207, s.4; 2002, c.30, s.5; 2003, c.89, s.81; 2004, c.165, s.3; 2009, c.75, s.6; 2017, c.97.