Bill Text: NJ S3408 | 2020-2021 | Regular Session | Introduced
Bill Title: Requires consultation with insurance producer or provision of cost benefit analysis prior to sale of automobile insurance policy.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2021-02-04 - Introduced in the Senate, Referred to Senate Commerce Committee [S3408 Detail]
Download: New_Jersey-2020-S3408-Introduced.html
Sponsored by:
Senator NICHOLAS P. SCUTARI
District 22 (Middlesex, Somerset and Union)
SYNOPSIS
Requires consultation with insurance producer or provision of cost benefit analysis prior to sale of automobile insurance policy.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning automobile insurance and supplementing R.S.17:28-1.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Except as provided in subsection b. of this section, no insurer shall issue a policy of motor vehicle liability insurance to an individual unless the individual consults with an insurance producer licensed pursuant to the "New Jersey Insurance Producer Licensing Act of 2001," P.L.2001, c.210 (C.17:22A-26 et seq.) about the policy prior to purchase.
b. Notwithstanding the provisions of subsection a. of this section to the contrary, an insurer may sell a policy of insurance through an internet website to an individual who has not consulted with an insurance producer if the insurer provides the individual with a cost benefit analysis prior to selling the policy of insurance.
c. The Department of Banking and Insurance shall adopt rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), to determine what constitutes a consultation and a cost benefit analysis and to effectuate the provisions of this act.
d. As used in this section, "insurer" means any insurer authorized or admitted to write motor vehicle insurance in this State, but does not include the New Jersey Automobile Full Insurance Underwriting Association created pursuant to sections 13 through 34 of P.L.1983, c.65 (C.17:30E-1 et seq.) or any residual market mechanism implemented pursuant to section 1 of P.L.1970, c.215 (C.17:29D-1).
2. This act shall take effect immediately.
STATEMENT
This bill prohibits an automobile insurer from issuing a policy of motor vehicle liability insurance to an individual unless the individual consults with an insurance producer about the policy prior to purchase.
In addition, the bill permits an insurer to sell a policy of insurance through an internet website to an individual who has not consulted with an insurance producer if the insurer provides the individual with a cost benefit analysis prior to selling the policy of insurance.
