2009 New Jersey Code
TITLE 39 - MOTOR VEHICLES AND TRAFFIC REGULATION
39:6
39:6-48 - Form of liability policy;  provisions to which it is subject; binders;  indorsements

39:6-48.  Form of liability policy;  provisions to which it is subject; binders;  indorsements
    No motor vehicle liability policy shall be issued or delivered in this State, as proof of financial responsibility, unless such policy discloses the name, address and business of the insured, the coverage afforded by the policy,  the premium charged therefor, the policy period, the limit of liability and the  agreement that the insurance thereunder is provided in accordance with the  coverage defined in sections twenty-four and twenty-five of this act and in  this section and is subject to all of the provisions of this act.

    The motor vehicle liability policy shall be subject to the following provisions which need not be contained therein:

    (a) The liability of a company under a motor vehicle liability policy shall  become absolute when loss or damage covered by the policy occurs and the  satisfaction by the insured of a final judgment of the loss or damage shall not  be a condition precedent to the right or duty of the carrier to make payment on  account of the loss or damage.  No such policy shall be canceled or annulled as  respects any loss or damage by any agreement between the carrier and the  insured after the insured has become responsible for the loss or damage and any  such cancellation or annulment shall be void.  Upon the recovery of a final  judgment against a person for the loss or damage if the judgment debtor was at  the accrual of the cause of action insured against liability therefor under a  motor vehicle liability policy, the judgment creditor shall be entitled to have  the insurance money applied to the satisfaction of the judgment.  The policy may provide that the insured or a person covered by the policy shall reimburse  the company for payments made on account of an accident, claim or suit  involving a breach of the terms, provisions or conditions of the policy;  and,  if the policy provides for limits in excess of the limits designated in this  section the insurance carrier may plead against the judgment creditor, with  respect to the amount of the excess limits of liability any defenses which it  may be entitled to plead against the insured.  The policy may further provide  for the prorating of the insurance thereunder with other applicable valid and  collectible insurance.

    (b) The policy, any written application therefor and any rider or indorsement which shall not conflict with the provisions of this act shall constitute the entire contract between the parties.

    Effective as of the date such proof is furnished and to the extent of the coverage required by this act and to the extent of the limits of liability specified in section twenty-four of this act, any policy of motor vehicle liability insurance furnished as proof of financial responsibility pursuant to section eighteen of this act, either by the filing of a certificate signed by a  duly licensed agent of the company issuing the policy as provided in the said  section, or otherwise, shall be deemed amended to conform with and to contain  all the provisions required by this act, any provision of the policy or  certificate to the contrary notwithstanding.

    An insurance carrier authorized to issue motor vehicle liability policies as  provided for in this act may, pending the issuance of the policy, execute an  agreement, to be known as a binder;  or may, in lieu of the policy, issue an  indorsement to an existing policy, each of which shall be construed to provide  indemnity or protection in like manner and to the same extent as the policy.   The provisions of said sections twenty-four and twenty-five and this section  shall apply to the binders and indorsements.

     L.1952, c. 173, p. 566, s. 26.