About Funding
Association and Fund have two primary sources of monies to fulfill their statuatory obligations.
First, the Association and Fund receive distributions from insolvent estates as reimbursements for payments made on behalf of those estates.
Second, the Association and Fund can collect monies from member companies on an as needed basis.
N.J.S.A. 17:30A-8a(3),
N.J.S.A. 17:22-6.75a(2)
Additionally, N.J.S.A. 17:22-6.75a(2) provides for a one-time payment of $25,000 by surplus lines companies to the Fund.
Assessments levied by the Association can be recouped by members through surcharges on policyholders upon approval of the DOBI Commissioner pursuant to N.J.S.A. 17:30A-8a(3),
while Fund monies are obtained directly through a surcharge on policy premiums as determined by the Banking and Insurance Commisioner. N.J.S.A. 17:22-6.75a(2)
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