New Jersey § 39:6-25

§ 39:6-25.

(a) If 20 days after the receipt of a report of a motor vehicle accident within this

State which has resulted in bodily injury or death, or damage to the property of any

one person in excess of $500.00, the director does not have on file evidence satisfactory

to him that the person who would otherwise be required to file security under subsection

(b) of this section has been released from liability, or has been finally adjudicated

not to be liable, or has executed a duly acknowledged written agreement providing

for the payment of an agreed amount in installments with respect to all claims for

injuries or damages resulting from the accident, and in the event of an accident involving

an automobile, required to have coverage for personal injury protection benefits pursuant

to P.L.1972, c. 70 ( C. 39:6A-1 et seq. ), has also reimbursed or has executed a duly acknowledged written agreement to pay

an agreed amount in installments to reimburse the Unsatisfied Claim and Judgment Fund

for the payment of all personal injury protection benefits the fund has made or shall

make pursuant to section 7 or section 10 of P.L.1972, c. 198 ( C. 39:6-86.1 and C. 39:6-86.4 ) by reason of the failure of such person to have the requisite insurance coverage

in effect, the director shall determine the amount of security which may be necessary

in his judgment to satisfy any reimbursement, judgment or judgments for damages resulting

from such accident as may be recovered against each operator or owner in view of the

total insurance protection available to the injured party. The Director of the Division of Motor Vehicles shall promulgate such rules as may

be necessary to set forth those instances where deposit of security is necessary. (b) The director may, within 90 days after the receipt of such report of a motor vehicle

accident, suspend the license of each operator and all registrations of each owner

of a motor vehicle in any manner involved in such accident, and if such operator is

a nonresident the privilege of operating a motor vehicle within this State, and if

such owner is a nonresident the privilege of the use within this State of any motor

vehicle owned by him, unless such operator or owner or both shall deposit security

in the sum so determined by the director; provided, notice of such suspension shall

be sent by the director to such operator and owner not less than 10 days prior to

the effective date of such suspension and shall state the amount required as security. Where erroneous information is given the director with respect to the matters set

forth in paragraph (1), (2) or (3) of subsection (c) of this section, he may take

appropriate action as hereinbefore provided, within 90 days after receipt by him of

correct information with respect to said matters. (c) This section shall not apply under the conditions stated in section 4 of this

act 1 nor: (1) To such operator or owner, if such owner had in effect, at the time of such accident,

a motor vehicle liability policy with respect to the motor vehicle involved in such

accident; (2) To such operator, if not the owner of such motor vehicle, if there was in effect

at the time of such accident a motor vehicle liability policy or bond with respect

to his operation of motor vehicles not owned by him; (3) To such operator or owner if the liability of such operator or owner for damages

resulting from such accident is, in the judgment of the director, covered by any other

form of liability insurance policy or bond; nor (4) To any person qualifying as a self-insurer under section 30 of this act, 2 or to any person operating a motor vehicle for such self-insurer. No such policy or bond shall be effective under this section unless issued by an insurance

company or surety company authorized to do business in this State, except that if

such motor vehicle was not registered in this State, or was a motor vehicle which

was registered elsewhere than in this State at the effective date of the policy or

bond, or the most recent renewal thereof, such policy or bond shall not be effective

under this section unless the insurance company or surety company if not authorized

to do business in this State shall execute a power of attorney authorizing the director

to accept service on its behalf of notice or process in any action upon such policy

or bond arising out of such accident; provided, however, every such policy or bond

is subject, if the accident has resulted in bodily injury or death, to a limit, exclusive

of interest and costs, of not less than $15,000.00 because of bodily injury to or

death of one person in any one accident and, subject to said limit for one person,

to a limit of not less than $30,000.00 because of bodily injury to or death of two

or more persons in any one accident, and, if the accident has resulted in injury to

or destruction of property, to a limit of not less than $5,000.00 because of injury

to or destruction of property of others in any one accident and if policy or bond

is applicable to an automobile required to have coverage for personal injury protection

benefits pursuant to P.L.1972, c. 70 ( C. 39:6A-1 et seq. ), it shall include an amount to cover personal injury protection benefits as required

by that act. 1

N.J.S.A. § 39:6-26. 2

N.J.S.A. § 39:6-52.