New Jersey § 39:6-48

§ 39:6-48.

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 1 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, 2 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. 1

N.J.S.A. §§ 39:6-46, 39:6-47 (repealed). 2

N.J.S.A. § 39:6-40 (repealed).