PLNJeasy
What is the primary purpose of the New Jersey FAIR Plan under N.J.S.A. 17:37A?
ATo replace the National Flood Insurance Program for all New Jersey residents living in coastal or flood-prone areas
BTo pay PIP benefits to uninsured motorists
To provide basic property insurance to applicants who cannot obtain coverage in the voluntary market
DTo insure state-owned buildings against hurricane damage
Why this is the answer
N.J.S.A. 17:37A authorizes the New Jersey FAIR Plan as the state's Fair Access to Insurance Requirements residual property market. It exists for applicants — typically in urban, coastal, or declination-prone areas — who have been refused coverage by voluntary insurers. The Plan writes basic perils on dwellings and certain commercial property. It is not a flood program (NFIP fills that role) and it does not insure state property or pay auto PIP claims.
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