2009 New Jersey Code
TITLE 17 - CORPORATIONS AND INSTITUTIONS FOR FINANCE AND INSURANCE
Section 17:51
17:51-2 - Actions against unauthorized insurers;  deposit or bond required before insurer may file pleading

17:51-2.  Actions against unauthorized insurers;  deposit or bond required before insurer may file pleading
    (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.
 
17:51-3.Inapplicability of act

3.  The provisions of this act shall not apply to any action or proceeding against any unauthorized insurer arising out of a contract of

(a)  Reinsurance effectuated in accordance with the laws of New Jersey;

(b)  Insurance placed with an unauthorized insurer made eligible for surplus lines by the commissioner pursuant to section 11 of P.L.1960, c.32 (C.17:22-6.45);

(c)  Aircraft insurance;

(d)  Insurance on property or operations of railroads engaged in interstate commerce;

(e)  Insurance against legal liability arising out of the ownership, operation or maintenance of any property having a permanent situs outside of this State; or

(f)  Insurance against loss of or damage to any property having a permanent situs outside this State; where such contract contains a provision designating the Commissioner of Insurance to  be its true and lawful attorney upon whom may be served all lawful process in any action or proceeding instituted by or on behalf of an insured or beneficiary arising out of any such contract or where the insurer enters a general appearance in any such action or proceeding.

L.1952,c.330,s.3; amended 1953, c.17, s.192; (repealed in part see N.J.S. 17B:36-3c); 1996, c.69, s.14.