N.J.S.A. 17:28-1.4 is known as the Deemer Statute. It provides the following in pertinent part:

[a]ny insurer authorized to transact or transacting automobile or motor vehicle insurance business in this State… shall include [in each out-of-state policy] at least the liability insurance requirements of [N.J.S.A. 39:6B-1 or N.J.S.A. 39:6A-3], the uninsured motorist insurance requirements of [N.J.S.A. 17:28- 1.1] and personal injury protection benefits coverage pursuant to [N.J.S.A. 39:6A-4 or N.J.S.A. 17:28-1.3] whenever the automobile or motor vehicle insured under the policy is used or operated in this State.

[a]ny insurer authorized to transact or transacting automobile or motor vehicle insurance business in this State . . . [to] include in each [out-of-state] policy coverage to satisfy at least the personal injury protection benefits coverage pursuant to [N.J.S.A. 39:6A-4 or N.J.S.A. 17:28-1.3] for any New Jersey resident who is not required to maintain personal injury protection coverage pursuant to [N.J.S.A. 39:6A-4] and who is not otherwise eligible for such benefits, whenever the automobile or motor vehicle insured under the policy is used or operated in this State.

The Deemer Statute was originally enacted in 1985, and is part of this State's no fault automobile insurance plan. Government Employees Ins. Co. v. Allstate Ins. Co., 358 N.J. Super. 555, 560; 818 A.2d 474 (App. Div. 2003). "The legislation was in response to a growing number of cases where New Jersey residents were injured in accidents caused by out-of-state drivers whose insurance coverage was less than New Jersey's statutory requirements" and was intended "to reduce the demands on the Unsatisfied Claim and Judgment Fund." Craig and Pomeroy, New Jersey Auto Insurance Law, comment 1:2-6 (2003).

The deemer statute mandates that the policies “automatically be reformed to provide the PIP coverage required under the laws of New Jersey.” Adams v. Keystone Ins. Co., 264 N.J. Super. 367, 371 (App. Div. 1993). The deemer statute provides that any policy issued by an insurance company qualified to do business in New Jersey (even in most cases through an affiliate) covering a vehicle while it was being operated in New Jersey had to provide the same type of PIP benefits as required under New Jersey law, including the $250,000 mandatory PIP minimum limit. Government Employees Ins. Co. v. Allstate, 358 N.J. Super. at 560.

So, what does this mean to you? If you have been involved in a motor vehicle accident (“MVA”) in New Jersey with an out-of-state driver, the deemer statute applies to make sure that the out-of-state driver is “deemed” to have the legally required amount of insurance coverage on his or her vehicle in order to compensate you for your physical injuries.