Bill Text: NJ A864 | 2024-2025 | Regular Session | Introduced
Bill Title: Concerns automobile insurance practices.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced) 2024-01-09 - Introduced, Referred to Assembly Financial Institutions and Insurance Committee [A864 Detail]
Download: New_Jersey-2024-A864-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Assemblywoman VERLINA REYNOLDS-JACKSON
District 15 (Hunterdon and Mercer)
Assemblyman BENJIE E. WIMBERLY
District 35 (Bergen and Passaic)
SYNOPSIS
Concerns automobile insurance practices.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning automobile insurance practices and supplementing Title 17 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. The Commissioner of Banking and Insurance shall conduct an investigation of practices of the automobile insurance industry of this State in regard to increases in automobile insurance premiums for drivers who have had motor vehicle driver's license suspensions and prepare a comparison between increases for drivers whose suspensions are for offenses relating to driving and increases for drivers whose suspensions are for offenses not related to driving. As part of the investigation, the commissioner shall evaluate the use of credit ratings and addresses in determining automobile insurance premiums for drivers. In performing the investigation, the commissioner shall determine whether factors such as non-driving related suspensions and credit ratings justify an increase in automobile insurance premiums. A report of the findings of the investigation shall be transmitted to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature no later than two years after the start of the investigation.
2. This act shall take effect on the first day of the sixth month after enactment and shall expire on the 90th day following transmittal of the report required by section 1 of this act.
STATEMENT
This bill requires the Department of Banking and Insurance to conduct an investigation of practices of the automobile insurance industry in regard to increases in automobile insurance premiums for drivers who have had motor vehicle driver's license suspensions for any reason - either driving related or not. Further, the commissioner of the department is to investigate the use of credit ratings and addresses in determining premiums for drivers. In performing its investigation, the department is to determine whether increases are justified for certain offenses not related to driving including credit ratings.
This bill was prompted by a recommendation from the Motor Vehicles Affordability and Fairness Task Force.
