Bill > A3911

Introduced Session

This bill provides that the Unsatisfied Claim and Judgment Fund ("UCJF") shall insure all pedestrian personal injury protection (PIP) claims for injuries caused by motor vehicles, motorcycles, and motorized bicycles if the pedestrian is not otherwise covered under an automobile insurance policy. The bill also provides the UCJF with a mechanism to recover payments when a self-insured motor vehicle causes the injury to an uninsured pedestrian. Previous automobile insurance reform legislation shifted responsibility for pedestrian PIP coverage from private passenger automobile insurance carriers to the UCJF. Although these revisions to the PIP coverage laws clearly indicate that the UCJF provides pedestrian PIP coverage for accidents involving automobiles, some uncertainty remains as to whether the UCJF is required to provide this coverage for accidents involving other vehicles. In order to fulfill the Legislatures intent in passing the reform legislation and to clarify coverage as to these other vehicles, the bill provides that as to injuries to a pedestrian caused by a motor vehicle, a motorcycle or a motorized bicycle, the UCJF must provide personal injury protection (PIP) coverage if the pedestrian sustains bodily injury in the State and is not otherwise covered under an automobile insurance policy. To further clarify that the UCJF provides this coverage, the bill repeals section 19 of P.L.1983, c.362 (C.17.28-1.3), which currently requires all liability insurance policies to provide pedestrian PIP coverage on motor vehicles that are not private passenger automobiles. The bill also makes certain technical changes that are consistent with the repeal of this section. Finally, the bill provides that the New Jersey Property-Liability Insurance Guaranty Association shall be entitled to recover on behalf of the UCJF for all payments made by the UCJF to a pedestrian pursuant to pedestrian PIP coverage, regardless of fault, from any entity that self-insured the motor vehicle involved in the accident through a certificate of self-insurance. The bill allows this recovery by the UCJF from self-insurers because self-insurers are not presently required to contribute to the UCJF with respect to the pedestrian PIP coverage that the UCJF provides.

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Lou Greenwald (D)*, 

Introduced, Referred to Assembly Financial Institutions and Insurance Committee (on 03/14/2011)