Goldmann, Freund and Foley. The opinion of the court was delivered by Foley, J.A.D.
The Unsatisfied Claim and Judgment Fund Board of the State of New Jersey (Fund) appeals from an order of the Law Division directing payment to plaintiff of a judgment she had previously recovered against defendant Chiselko.
The factual background of the case follows: On July 30, 1958 plaintiff suffered personal injuries when her standing automobile which she occupied was struck in the rear by an automobile owned and operated by Chiselko.
On August 4, 1958 a complaint against Chiselko charging a violation of the Traffic Act came on for hearing in the Municipal Court of Bound Brook. At that time Chiselko in the court's presence informed plaintiff that he carried automobile liability insurance with American Automobile Insurance Company (American) and showed her certain documents purporting to be to this effect. These consisted of (1) a receipt of the Automobile Association of New Jersey on which there is boldly printed:
"THIS RECEIPT IS NOT A BINDER FOR INSURANCE
The inscription on the reverse side reads:
"THIS RECEIPT FOR PAYMENT OF MONEY IS NOT TO BE CONSTRUED AS A BINDER FOR INSURANCE. NO INSURANCE IS BOUND OR EFFECTIVE UNTIL A WRITTEN BINDER OR POLICY OF INSURANCE HAS BEEN ISSUED BY AN INSURANCE COMPANY";
and (2) a receipt of Automobile Assigned Risk Plans showing that in accordance with the rules of the Automobile Assigned Risk Plan the application of Chiselko for insurance had been assigned to the American Automobile Ins. Co. This document clearly states that it is a:
"RECEIPT FOR DEPOSIT PREMIUM -- NOT EVIDENCE OF INSURANCE."
It is undisputed that American extended insurance to Chiselko as an assigned risk but that such insurance did not become effective until August 1, 1958, two days after the happening of the accident.
In response to a letter from plaintiff's attorney, dated March 30, 1959, American, on April 16, 1959, advised that the policy it had issued to Chiselko became effective on August 1, 1958, and hence did not cover the accident involved. It was disclosed at the trial that prior to this
exchange of letters plaintiff's counsel had been informed by telephone (on or about March 24, 1959) that the insurer had "disclaimed" liability and that such notification had prompted him to request of American the March 30 letter. This was the first specific notice plaintiff had that Chiselko was uninsured at the time of the happening. Within 15 days thereafter, April 1, 1959, her attorney filed with the Fund a "Notice of Intention to Make Claim."
Thereafter, the present action was instituted against Chiselko and reduced to judgment, after which execution was returned unsatisfied. Plaintiff then sought and obtained the order under review. In ...