Thursday, July 11th, 2002 — 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 states 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 states 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.