Insurance Company Rehabilitations and Insolvencies
Guidelines have been developed to prescribe the procedure to be used whenever an insurance company has been declared insolvent or has been placed into liquidation and a statewide stay is sought of all New Jersey litigation. A copy of the procedure appears in the appendix. Whenever a carrier is declared insolvent, the New Jersey Property Liability Insurance Guaranty Association (NJPLIGA) is responsible for the defense of certain suits and payment of certain claims up to $300,000 per claim, after the claimant has exhausted all other insurance coverage. See N.J.S.A. 17:22.6-74, - 77 and –79.
NJPLIGA is entitled, as a matter of right, to an initial stay of litigation of 120 days from the date of any order of insolvency. See N.J.S.A. 17:30A-18.
Whenever an insurance carrier has been placed into rehabilitation by a court in a foreign jurisdiction and the order contains language staying all cases in which the carrier is involved, the New Jersey courts must honor such stays. See Aly v. E.S. Sutton Realty, 360 N.J. Super . 214 (App Div. 2003).
All cases subject to a stay because of either a rehabilitation or insolvency of an insurance carrier may be placed on the inactive list during the period of the stay and any extensions thereof.
More information can be obtained from “ A PRACTITIONER’S GUIDE TO NEW JERSEY’S CIVIL COURT PROCEDURES”
http://www.judiciary.state.nj.us/civil/PractitionersGuideManualAppendicesMay2007WebPostingVersion.pdf KENNETH VERCAMMEN & ASSOCIATES, PC
ATTORNEY AT LAW
2053 Woodbridge Ave.
Edison, NJ 08817 (Phone) 732-572-0500
(Fax) 732-572-0030 Personal Injury Dept.: 732-572-0024
website: www.njpersonalinjurylawcenter.com
