# NAII Blasts NJ Raid of Guaranty Funds 

_News_

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An insurance trade group is blasting New Jersey officials for using half the money in a fund covering claims against insolvent surplus lines insurance companies- to help fill their state‘s multi-billion dollar budget gap. 

The National Association of Independent Insurers condemned the action as possibly illegal and raised the possibility of a lawsuit.

Senate bill 1717, signed into law by Democratic Gov. James E. McGreevey on July 1, authorizes the transfer of more than $40 million from the Surplus Lines Insurance Guaranty Fund to the state‘s general fund.

The measure moved through the legislature during a frantic 11-hour marathon session during which lawmakers and the governor hammered out a balanced budget, which by law was due July 1.

Sources:
- National Underwriter (http://www.nationalunderwriter.com/pandc/hotnews/viewPC.asp?article=7_10_02_16_5791.xml)