17:51-2. Actions against unauthorized insurers; deposit or bond required before insurer may file pleading
293 words·~1 min read·
/nj/title-17/chapter-51/17-51-2A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Before any insurer not authorized to transact business in this State shall file or cause to be filed any pleading or other paper in any action or proceeding instituted against it, such insurer shall either
(1)deposit with the clerk of the court in which such action or proceeding is pending cash or securities or file with such clerk a bond with good and sufficient sureties, to be approved by the court, in an amount to be fixed by the court sufficient to secure the payment of any final judgment which may be rendered in such action; provided, however, that the court may in its discretion and after reasonable notice to the opposing party and upon a hearing make an order dispensing with such deposit or bond where the insurer shows to the satisfaction of the court that it maintains, in a State of the United States, funds or securities, in trust or otherwise, sufficient and available to satisfy any final judgment which may be entered in such action or proceeding; or
(2)procure a certificate of authority to transact the business of insurance in this State.
(b)Nothing in subsection
(a)of this section is to be construed to prevent an insurer not authorized to transact business in this State from making a motion for summary judgment, or judgment on the pleadings, or to dismiss the complaint on the ground either
(1)that such insurer has not done any of the acts enumerated in subsection
(a)of section one, or
(2)that the person on whom service was made pursuant to subsection
(c)of section one was not doing any of the acts therein enumerated.
L.1952, c. 330, p. 1056, s. 2. Amended by L.1953, c. 17, p. 300, s. 191.