What does the Guaranty Association or Fund consider a “covered claim?”
A “covered claim” is an unpaid claim which arises out of, and is within the coverage and limits of, an insurance policy issued to a New Jersey resident or for property permanently located in New Jersey and where all other available coverage has been exhausted. A “covered claim” does not include amounts due any insurance pool, re-insurer, insurer, or underwriting association. This applies to all kinds of direct insurance except life, accident and health insurance, workers’ compensation, title insurance, annuities, surety bonds, credit insurance mortgage guaranty insurance, municipal bond coverage, fidelity insurance, investment return assurance, ocean marine insurance, pet health insurance and insurance provided by the Motor Vehicle Liability Security Fund.
