2. a. The purpose of this act is to provide a mechanism for the payment of covered claims under certain insurance policies, to avoid excessive delay in payment, to minimize financial loss to claimants or policyholders because of the insolvency of an insurer, to assist in the detection and prevention of insurer insolvencies, to provide an association to assess the cost of such protection among insurers, and to provide a mechanism to run off, manage, administer and pay claims asserted against the Unsatisfied Claim and Judgment Fund, created pursuant to P.L.1952, c.174 (C. 39:6-61 et seq.), the New Jersey Automobile Full Insurance Underwriting Association, created pursuant to P.L.1983, c.65 (C. 17:30E-1 et seq.), the Market Transition Facility, created pursuant to section 88 of P.L.1990, c.8 (C. 17:33B-11), and “the workers’ compensation security fund,” created pursuant to R.S.34:15-105.

b. This act shall apply to all kinds of direct insurance, except life insurance, accident and health insurance, workers’ compensation insurance, except as provided by P.L.2009, c.327 (C. 34:15-105.1 et al.), title insurance, annuities, surety bonds, credit insurance, mortgage guaranty insurance, municipal bond coverage, fidelity insurance, investment return assurance, ocean marine insurance and pet health insurance.

L.1974, c.174, s.2; amended 1979, c.448, s.1; 1981, c.201, s.1; 1987, c.377, s.4; 2003, c.89, s.2; 2004, c.175, s.1; 2009, c.327, s.6.