Bill Text: NJ S2279 | 2024-2025 | Regular Session | Introduced
Bill Title: Raises minimum amount of liability coverage for commercial motor vehicles and autocabs.
Spectrum: Bipartisan Bill
Status: (Passed) 2024-01-09 - Withdrawn Because Approved P.L.2023, c.276. [S2279 Detail]
Download: New_Jersey-2024-S2279-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Senator NICHOLAS P. SCUTARI
District 22 (Somerset and Union)
Senator JON M. BRAMNICK
District 21 (Middlesex, Morris, Somerset and Union)
SYNOPSIS
Raises minimum amount of liability coverage for commercial motor vehicles and autocabs.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
AN ACT concerning commercial motor vehicle coverage and amending P.L.1972, c.197 and R.S.48:16-3.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.1972, c.197 (C.39:6B-1) is amended to read as follows:
1. a. Every owner or registered owner of a motor vehicle registered or principally garaged in this State shall maintain motor vehicle liability insurance coverage, under provisions approved by the Commissioner of Banking and Insurance, insuring against loss resulting from liability imposed by law for bodily injury, death and property damage sustained by any person arising out of the ownership, maintenance, operation or use of a motor vehicle wherein such coverage shall be at least in: (1) an amount or limit of $15,000 for plans issued or renewed prior to January 1, 2023, $25,000 for plans issued or renewed on or after January 1, 2023 but prior to January 1, 2026, and $35,000 for plans issued or renewed on or after January 1, 2026, exclusive of interest and costs, on account of injury to, or death of, one person, in any one accident; and (2) an amount or limit, subject to such limit for any one person so injured or killed, of $30,000 for plans issued or renewed prior to January 1, 2023, $50,000 for plans issued or renewed on or after January 1, 2023 but prior to January 1, 2026, and $70,000 for plans issued or renewed on or after January 1, 2026, exclusive of interest and costs, on account of injury to or death of, more than one person, in any one accident; and (3) an amount or limit of $25,000 for plans issued or renewed on or after January 1, 2023, exclusive of interest and costs, for damage to property in any one accident; and (4) for a commercial motor vehicle, an amount or limit of $1,500,000, exclusive of interest and costs, on account of injury to or death of, one or more persons in any one accident or for damage to property in any one accident; and (5) for a commercial motor vehicle with a gross vehicle weight rating of 10,001 or more pounds but less than 26,001 pounds, an amount or limit of $500,000, exclusive of interest and costs, on account of injury to or death of, one or more persons in any one accident or for damage to property in any one accident. The provisions of paragraphs (4) and (5) of this subsection may be satisfied by a commercial automobile insurance policy, fleet insurance policy, commercial umbrella insurance policy, commercial excess insurance policy, similar insurance policy, or any combination thereof.
b. Notwithstanding the provisions of subsection a. of this section, an owner or registered owner of an automobile, as defined in section 2 of P.L.1972, c.70 (C.39:6A-2), registered or primarily garaged in the State may satisfy the requirements of subsection a. of this section by maintaining a basic automobile insurance policy containing coverages provided pursuant to subsections a. and b. of section 4 of P.L.1998, c.21 (C.39:6A-3.1).
c. Notwithstanding the provisions of subsection a. of this section, an owner or registered owner of an automobile, as defined in section 2 of P.L.1972, c.70 (C.39:6A-2), registered or primarily garaged in the State may satisfy the requirements of subsection a. of this section by maintaining a special automobile insurance policy containing coverages provided pursuant to subsection b. of section 45 of P.L.2003, c.89 (C.39:6A-3.3).
d. Upon the renewal of a policy of insurance that, under its original policy limits, would no longer meet the minimum requirements established pursuant to this section, an insurer shall notify the named insured that the policy limits have been increased to meet the requirements established pursuant to this section. Notice provided pursuant to this subsection shall specify the limit or limits that have been increased to meet the requirements established pursuant to this section. Notwithstanding the provisions of any law, rule, or regulation to the contrary, an insurer shall not be required to receive a signed coverage selection form pursuant to N.J.A.C.11:3-15.7, to increase a policy's limits pursuant to this section.
e. As used in this section, "commercial motor vehicle" means a commercial motor vehicle as defined pursuant to section 3 of P.L.1990, c.103 (C.39:3-10.11) and an autocab as defined pursuant to R.S.48:16-1, and shall include commercially registered vehicles or vehicles operating commercially. For purposes of paragraph (5) of subsection a. of this section, "commercial motor vehicle" shall also include commercially registered vehicles or vehicles operating commercially with a gross vehicle weight rating of 10,001 or more pounds but less than 26,001 pounds.
(cf: P.L.2022, c.87, s.2)
2. R.S.48:16-3 is amended to read as follows:
48:16-3. No such consent shall become effective until the provisions of subsections a. and b. of this section have been satisfied:
a. The owner of the autocab shall have filed with the clerk of the municipality in which such operation is permitted, an insurance policy which shall be issued by an admitted insurance company duly licensed to transact business under the insurance laws of this State or a company registered to do business in the State, the policy providing for not less than [$35,000 of motor vehicle liability insurance coverage or the amount of motor vehicle liability insurance coverage required pursuant to section 1 of P.L.1972, c.197 (C.39:6B-1), whichever is greater,] $1.5 million to satisfy all claims for damages, by reason of bodily injury to, or the death of, any person or persons, resulting from, or on account of, an accident, by reason of the ownership, operation, maintenance, or use of such autocab upon any public street; and to satisfy any claim for damages to property of any person or persons, resulting from, or on account of, an accident, by reason of the ownership, operation, maintenance, or use of such autocab upon any public street.
Nothing contained in this subsection shall prohibit the owner of an autocab from obtaining any additional amount of motor vehicle liability insurance coverage from a company licensed outside the State of New Jersey.
The consent shall be effective and operation thereunder shall be permitted only so long as the insurance policy shall remain in force to the full and collectible amounts as aforesaid.
The insurance policy shall provide for the payment of any final judgment recovered by any person on account of the ownership, maintenance, or use of the autocab or any fault in respect thereto, and shall be for the benefit of every person suffering loss, damage or injury as aforesaid; and
b. Each operator or driver of the autocab for which the owner thereof is seeking the consent to operate in a municipality has submitted to the performance of a criminal history record background check. The cost for the criminal history record background check, including all costs of administering and processing the check, shall be borne by the operator or driver of the autocab.
A person shall be disqualified from operating or driving an autocab if a criminal history record background check required pursuant to this subsection reveals a record of conviction of any of the following crimes:
(1) In New Jersey or elsewhere any crime as follows: aggravated assault, arson, burglary, escape, extortion, homicide, kidnapping, robbery, aggravated sexual assault, sexual assault or endangering the welfare of a child pursuant to N.J.S.2C:24-4, whether or not armed with or having in his possession any weapon enumerated in subsection r. of N.J.S.2C:39-1, a crime pursuant to the provisions of N.J.S.2C:39-3, N.J.S.2C:39-4, or N.J.S.2C:39-9, or other than a disorderly persons or petty disorderly persons offense for the unlawful use, possession or sale of a controlled dangerous substance as defined in N.J.S.2C:35-2.
(2) In any other state, territory, commonwealth, or other jurisdiction of the United States, or any country in the world, as a result of a conviction in a court of competent jurisdiction, a crime which in that other jurisdiction or country is comparable to one of the crimes enumerated in paragraph (1) of this subsection.
If a person who has been convicted of one of the crimes enumerated in paragraphs (1) and (2) of this subsection can produce a certificate of rehabilitation issued pursuant to N.J.S.2A:168A-8 or, if the criminal offense occurred outside New Jersey, an equivalent certificate from the jurisdiction where the criminal offense occurred, the criminal offense shall not disqualify the applicant from operating or driving an autocab.
The provisions of this subsection shall not apply to an operator or driver of an autocab who has received the consent to operate in a municipality prior to the effective date of P.L.2011, c.135 (C.48:16-2.1 et al.).
(cf: P.L.2011, c.135, s.5)
3. This act shall take effect on the first day of the sixth month next following the date of enactment and shall apply to all automobile insurance policies initiated or renewed on or after that date.
STATEMENT
This bill raises the minimum amount of liability coverage for commercial motor vehicles to $1.5 million. Specifically, the bill:
(1) requires an owner or registered owner of an autocab, commonly referred to as a "taxi," to maintain motor vehicle liability insurance coverage of at least $1.5 million to insure against loss resulting from liability imposed by law for bodily injury, death, and property damage; and
(2) requires an owner or registered owner of a commercial motor vehicle with a gross vehicle weight rating of 10,001 or more pounds but less than 26,001 pounds to maintain motor vehicle liability insurance coverage of at least $500,000 to insure against loss resulting from liability imposed by law for bodily injury, death, and property damage.
