Prohibits automobile insurers from using underwriting rules to raise automobile insurance rates on persons deemed not at fault in motor vehicle accidents involving municipal vehicles.

A1214

ASSEMBLY, No. 1214

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman ALEXANDER "AVI" SCHNALL

District 30 (Monmouth and Ocean)

Assemblyman� ROY FREIMAN

District 16 (Hunterdon, Mercer, Middlesex and Somerset)

Assemblywoman� ROSAURA "ROSY" BAGOLIE

District 27 (Essex and Passaic)

SYNOPSIS

���� Prohibits automobile insurers from using underwriting
rules to raise automobile insurance rates on persons deemed not at fault in
motor vehicle accidents involving municipal vehicles.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act

concerning automobile insurance underwriting
rules and amending P.L.1997, c.151.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� Section 15 of P.L.1997,
c.151 (C.17:29A-46.2) is amended to read as follows:

���� 15.� a.� Insurers shall put in
writing all underwriting rules applicable to each rate level utilized pursuant
to section 14 of P.L.1997, c.151 (C.17:29A-46.1).� An insurer may take into
account factors, including, but not limited to, driving record characteristics
appropriate for underwriting and classification in formulating its underwriting
rules; provided that no underwriting rule based on motor vehicle violations
shall be formulated in such a manner as to assign any named insured to a rating
tier other than the standard rating tier applicable to the insured's territory
solely on the basis of accumulating four motor vehicle points or less.� No
underwriting rule shall operate in such a manner as to assign a risk to a
rating plan on the basis of the territory in which the insured resides or any
other factor which the commissioner finds is a surrogate for territory. No
underwriting rule shall operate in such a manner as to assign a risk to a
rating plan on the basis of an insured holding a standard motorcycle license or
standard basic driver's license issued pursuant to R.S.39:3-10, or standard
probationary license issued pursuant to section 4 of P.L.1950, c.127
(C.39:3-13.4).�
No underwriting rule shall operate in such a manner as to
assign a risk to a rating plan on the basis of a named insured�s involvement in
a motor vehicle accident in which: (1) the named insured is a private
individual deemed not at fault by the insurer providing coverage to the named
insured at the time of the accident; and (2) the at fault party involved in the
accident is a municipality subject to immunity pursuant to Title 59 of the New
Jersey Statutes.
� An insurer which knowingly fails to transact automobile
insurance consistently with its underwriting rules shall be subject to a fine
of not less than $1,000 for each violation.

���� b.��� All underwriting rules
applicable to each rate level as provided for in section 14 of P.L.1997, c.151
(C.17:29A-46.1) shall be filed with the commissioner and shall be subject to
the commissioner's prior approval.� All underwriting rules shall be subject to
public inspection.� Except as provided in subsection d. of section 27 of
P.L.1990, c.8 (C.17:33B-15), insurers shall apply their underwriting rules
uniformly and without exception throughout the State, so that every applicant
or insured conforming with the underwriting rules will be insured or renewed,
and so that every applicant not conforming with the underwriting rules will be
refused insurance.

���� c.���� An insurer with more
than one rating plan for private passenger automobile insurance policies
providing identical coverages shall not adopt underwriting rules which would
permit a person to be insured for private passenger automobile insurance under
more than one of the rating plans.

���� d.��� An insurer that revises
its underwriting rules with respect to the assignment of insureds to rating
tiers based on the number of accumulated motor vehicle points, as provided by
subsection a. of this section, as amended by P.L.2003, c.89, shall certify to
the commissioner that the revised rule will produce rates that are revenue
neutral based upon the insurer's current coverages and book of business.

(cf: P.L.2019, c.271, s.19)

���� 2.��� This act shall take
effect on the 90th day next following enactment and shall apply to automobile
insurance policies issued, executed, delivered, or renewed on or after that
date.�

STATEMENT

���� This bill prohibits automobile
insurers from using underwriting rules to raise automobile insurance rates on
persons who are deemed not at fault when their vehicle is involved in a motor
vehicle accident with a municipal vehicle.

���� Under the bill, automobile
insurers will be prohibited from using underwriting rules to assign a risk to a
rating plan on the basis of the named insured�s involvement in a motor vehicle
accident in which: (a) the named insured is a private individual deemed not at
fault by the insurer providing coverage to the named insured at the time of the
accident; and (b) the at fault party involved in the accident is a municipality
subject to immunity.