Prohibits use of education, occupation, and credit score as rating factors in automobile insurance underwriting.

A1931

ASSEMBLY, No. 1931

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblywoman ANNETTE QUIJANO

District 20 (Union)

Assemblyman WAYNE P. DEANGELO

District 14 (Mercer and Middlesex)

Assemblywoman VERLINA REYNOLDS-JACKSON

District 15 (Hunterdon and Mercer)

Co-Sponsored by:

Assemblywoman Speight, Assemblyman Spearman, Assemblywomen
Carter, Morales and Assemblyman Verrelli

SYNOPSIS

���� Prohibits use of education, occupation, and credit
score as rating factors in automobile insurance underwriting.

CURRENT VERSION OF TEXT

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

��

An Act

concerning certain automobile insurance
underwriting rules, amending P.L.1997, c.151 and supplementing P.L.1972, c.70
(C.39:6A-1 et seq.).

����
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�s: (1) educational level; (2)
employment, trade, business, occupation or profession; or (3) credit score, or
any information derived from an insured�s credit report.
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
his 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.2003, c.89, s.40)

���� 2.��� (New section) No insurer
shall inquire of an insured or applicant for insurance, or of a third-party
concerning an insured or applicant, as to the: (1) educational level; (2)
employment, trade, business, occupation or profession; or (3) credit score, or
any information derived from the credit report, of an insured or applicant.

���� 3.��� This act shall take
effect on the 90th day following enactment.

STATEMENT

���� This bill prohibits automobile
insurers from assigning an insured or prospective insured to a rating tier
based upon that person�s: (1) educational level; (2) employment, trade,
business, occupation or profession; or (3) credit score, or any information
derived from an insured�s credit report. The bill also prohibits automobile
insurers from inquiring of an insured or applicant for insurance, or of a
third-party concerning an insured or applicant, as to these factors.