Unsatisfied Judgment Fund

DEFINITION of 'Unsatisfied Judgment Fund'

An amount of money set aside by certain states to cover uncompensated expenses related to bodily injuries sustained in motor vehicle accidents where the responsible driver is unable to pay for the damages. The unsatisfied judgment fund is used to help the injured and not-at-fault driver pay for medical bills related to the accident. In order to be eligible to receive assistance from the fund, the injured party must be able to prove that he or she was not at fault, and that they are unable to collect money from the responsible party.

BREAKING DOWN 'Unsatisfied Judgment Fund'

The unsatisfied judgment fund is intended to protect drivers from financial losses resulting from motor vehicle accidents for which they are not responsible. The responsible party may be unable to pay because he or she is insolvent or uninsured. Often, these state funds are financed by a small addition to the state's automobile registration fee. The fund pays unsatisfied judgments up to certain, fixed limits.


There can me penalties to the the driver who is determined to be at fault in the accident and who is unable to pay for damages. For example, the driver might lose his or her driver's license. Once the responsible driver pays back the money into the unsatisfied judgment fund, he or she may be eligible for a driver's license again.

RELATED TERMS
  1. Compensatory Damages

    Money awarded to a plaintiff to compensate for damages, injury, ...
  2. Comparative Negligence

    A principle of tort law that applies to casualty insurance in ...
  3. Auto Insurance

    A policy purchased by vehicle owners to mitigate costs associated ...
  4. Liability Insurance

    Any type of insurance policy that protects an individual or business ...
  5. Judgment

    A court order to the loser of a lawsuit to pay the winner a specified ...
  6. Fiscal Policy

    Government spending policies that influence macroeconomic conditions. ...
Related Articles
  1. Budgeting

    12 Car Insurance Cost-Cutters

    If car costs are dragging you down, find out how to free yourself from some of the extra weight.
  2. Options & Futures

    Top Tips For Cheaper, Better Car Insurance

    Accident, theft, vandalism - make sure your coverage will protect you when you need it most.
  3. Fundamental Analysis

    The Evolution of Obamacare Since Its Inception

    Find out whether the Patient Protection and Affordable Care Act, also known as Obamacare, has lived up to its lofty projections from 2010.
  4. Stock Analysis

    The Biggest Risks of Investing in Lockheed Martin Stock (LMT)

    Learn about defense contractor, Lockheed Martin, its leadership within its industry, and how the company can stay on top as the defense landscape changes.
  5. Investing News

    Chipotle Served with Criminal Probe

    Chipotle's beat muted expectations and got a clear bill from the CDC, but it now appears that an investigation into its E.coli breakout has expanded.
  6. Stock Analysis

    China Mobile: Just How Big is It? (CHL, CHU, CHA)

    The story behind China Mobile, the biggest company you might never have heard of.
  7. Markets

    The (Expected) Market Impact of the 2016 Election

    With primary season upon us, investor attention is beginning to turn to the upcoming U.S. presidential election.
  8. Economics

    Trump vs. Bloomberg: How They Compare

    If Bloomberg enters the presidential race how will he compare to billionaire brethren Trump?
  9. Fundamental Analysis

    5 Economic Changes to Expect if a Republican Wins in 2016

    Discover the five most likely economic changes the United States can expect if a Republican wins the presidential election in 2016.
  10. Term

    What Is Section 1231 Property?

    Section 1231 property is depreciable business property that’s held for a year or longer.
RELATED FAQS
  1. How much money does Florida make from unclaimed property each year?

    Each year, goods such as money, financial investments and physical property are either auctioned off or appraised before ... Read Full Answer >>
  2. How much money does New York make from unclaimed property each year?

    According to the Office of the New York State Comptroller, types of unclaimed property accounts include bank accounts, wages, ... Read Full Answer >>
  3. What is the Social Security administration responsible for?

    The main responsibility of the U.S. Social Security Administration, or SSA, is overseeing the country's Social Security program. ... Read Full Answer >>
  4. Where are the Social Security administration headquarters?

    The U.S. Social Security Administration, or SSA, is headquartered in Woodlawn, Maryland, a suburb just outside of Baltimore. ... Read Full Answer >>
  5. Is the Social Security administration a government corporation?

    The U.S. Social Security Administration (SSA) is a government agency, not a government corporation. President Franklin Roosevelt ... Read Full Answer >>
  6. How does the role of Medicare/Medicaid affect the drugs sector in the U.S.? (UNH, ...

    Medicare and Medicaid have enormous influence on the pharmaceutical, or drugs, sector in the United States. For instance, ... Read Full Answer >>
Hot Definitions
  1. Presidential Election Cycle (Theory)

    A theory developed by Yale Hirsch that states that U.S. stock markets are weakest in the year following the election of a ...
  2. Super Bowl Indicator

    An indicator based on the belief that a Super Bowl win for a team from the old AFL (AFC division) foretells a decline in ...
  3. Flight To Quality

    The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This ...
  4. Discouraged Worker

    A person who is eligible for employment and is able to work, but is currently unemployed and has not attempted to find employment ...
  5. Ponzimonium

    After Bernard Madoff's $65 billion Ponzi scheme was revealed, many new (smaller-scale) Ponzi schemers became exposed. Ponzimonium ...
  6. Quarterly Earnings Report

    A quarterly filing made by public companies to report their performance. Included in earnings reports are items such as net ...
Trading Center