17:30B-10 - Surcharge on policies; credit to joint underwriting association fund of recovered moneys - New Jersey Statutes

17:30B-10.  Surcharge on policies;  credit to joint underwriting association  fund of recovered moneys    a.  A surcharge on insurance policies of the kind which are being assumed by  the associations created hereunder shall be levied in amounts sufficient to  recoup over a reasonable length of time a sum equal to the amounts necessary  for reimbursement pursuant to section 5 b. of this act. The surcharge shall be  a separate charge to the insured in addition to the premium to be paid and  shall be reflected as such in the policy.  The insurer shall be prohibited from  absorbing such surcharge as an inducement for insurance or any other reason.

    b.  The amount of such surcharge shall be determined by the commissioner, but in no event shall the surcharge on any policy exceed one-half of 1% of the policy premium.

    c.   Whenever moneys are recovered as a result of claims arising on or after  September 19, 1974 from Gateway Insurance Company, Empire Mutual Insurance  Company or Allcity Insurance Company insurers or lending institutions financing  insurance policies for any of said companies with respect to policies for New  Jersey residents or any of their brokers or agents, said moneys shall be  credited to the Joint Underwriting Association Fund for use by the commissioner  with respect to future insolvencies.

     L.1974, c. 106, s. 10, eff. Sept. 19, 1974.  Amended by L.1975, c. 76, s. 1, eff. May 1, 1975;  L.1977, c. 278, s. 2, eff. Oct. 31, 1977.