Prohibits automobile insurers from increasing automobile insurance rates on persons deemed not at fault in automobile accidents.

A4570

ASSEMBLY, No. 4570

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MARCH 10, 2026

Sponsored by:

Assemblywoman� ROSAURA "ROSY" BAGOLIE

District 27 (Essex and Passaic)

Assemblywoman� ANNETTE QUIJANO

District 20 (Union)

Assemblyman� STERLEY S. STANLEY

District 18 (Middlesex)

SYNOPSIS

���� Prohibits automobile insurers from increasing
automobile insurance rates on persons deemed not at fault in automobile
accidents.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning
automobile insurance and automobile insurance rates, amending P.L.1997, c.151
and amending and supplementing P.L.1990, c.8 (C.17:33B-1 et al.).

����
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 the named insured is deemed not at fault by
the insurer providing coverage to the named insured at the time of the
accident.
� 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.��� Section 26 of P.L.1990,
c.8 (C.17:33B-14) is amended to read as follows:

���� 26.�
a.
The
commissioner shall, within 90 days of the effective date of this act,
promulgate a schedule of automobile insurance eligibility points by rule or
regulation adopted pursuant to the "Administrative Procedure Act,"
P.L.1968, c.410 (C.52:14B-1 et seq.).� The schedule shall assess a point
valuation to driving experience related violations and shall include
assessments for violations of lawful speed limits within such increments as
determined by the commissioner, other moving violations, and at-fault accidents.�

����
b.
��� For the purposes
of this section, an "at-fault accident," occurring before the
effective date of P.L.2003, c.89 (C.17:30A-2.1 et al.), means an at-fault
accident which results in payment by the insurer of at least a $500 claim and
for accidents occurring on or after the effective date of P.L.2003, c.89
(C.17:30A-2.1 et al.), means an at-fault accident which results in payment by
the insurer of at least a $1,000 claim, which amount may be adjusted in $100 or
$250 increments periodically by order of the commissioner no more frequently
than every 36 months, as the commissioner deems appropriate, to reflect the
cumulative increases or decreases in the components of the Consumer Price
Index, All Urban Consumers (CPI-U) for the Northeast Region, and the adjusted
amount shall apply to automobile accidents occurring at least 120 days after
the effective date of the adjustment; except that an at-fault accident shall
not mean an accident occurring as a result of operation of any motor vehicle in
response to a medical emergency if the operator at the time of the accident was
a physician responding to the medical emergency.
The commissioner shall also
establish, by rule or regulation adopted pursuant to the "Administrative
Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), standards for determining
which accidents, where the insurer pays at least $1,000 for a claim, are �at-fault
accidents� for the purposes of this section.� The standards established by the
commissioner pursuant to this subsection shall include exclusions for automobile
accidents where the automobile of an eligible person is struck:

����
(1)�� from the rear;

����
(2)�� by a driver
determined to be at-fault under the standards established pursuant to this
subsection; or

����
(3)�� under other
circumstances as determined by the commissioner.

����
c.���� Nothing in this subsection
b. of this section shall be construed to limit an insurer�s ability to adjust
automobile insurance premiums for factors unrelated to at-fault accidents,
except that such adjustments shall not be used to circumvent section 3 of P.L. , c. (C. )
(pending before the Legislature as this bill).

(cf: P.L.2003, c.89, s.64)

���� 3.��� (New section) a.� An
insurer shall not increase an automobile insurance policy premium, impose a
surcharge or differential on a policy based on scheduled automobile insurance
eligibility points pursuant to section 26 of P.L.1990, c.8 (C.17:33B-14), or
adversely rerate a policy based on an accident unless the insurer determines
that:

���� (1)�� the named insured or
covered person under named insured�s policy was at-fault under the standards
established by the commissioner pursuant to section 26 of P.L.1990, c.8
(C.17:33B-14); and

���� (2)�� the determination is
supported by a review of available information, including:

���� (a)�� police reports, if
applicable;

���� (b)�� statements; and

���� (c)�� claim file
documentation.

���� b.��� Any adverse rerating of
an automobile insurance policy pursuant to subsection a. of this section shall
be disclosed in writing to the named insured and shall include:

���� (1)�� the basis for the
insurer�s at-fault determination made pursuant to paragraph (1) of subsection
a. of this section that resulted in the rerating;

���� (2) the specific impact an
adverse rerating has on the policy, including surcharges, rating tier changes,
or premium effects; and

���� (3)�� the right to dispute the
insurer�s at-fault determination through an insurer review and, if necessary,
an administrative review by the commissioner.�

���� c.���� The commissioner shall adopt,
pursuant to the "Administrative Procedure Act," P.L.1968, c.410
(C.52:14B-1 et seq.), rules and regulations as is necessary to implement the
provisions of this section.

���� 4.��� This act shall take
effect on the first day of the seventh month 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 increasing automobile insurance rates on persons deemed not
at-fault in automobile accidents.

���� Under the bill, an automobile
insurer will be prohibited from taking adverse actions against a named insured
involved in an automobile accident unless the named insured is deemed at-fault
in an automobile accident.� Specifically, the bill:

���� (1)�� prohibits automobile
insurers 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 the
named insured is deemed not at fault by the insurer;

���� (2)�� requires the
Commissioner of Banking and Insurance to establish standards for determining
which accidents are �at-fault accidents� when creating a schedule of automobile
insurance eligibility points; and

���� (3)�� prohibits automobile
insurers from increasing premiums, imposing surcharges or differentials on a
policy based on scheduled automobile insurance eligibility points, or adversely
rerating a policy based on an accident unless the insurer determines that the
named insured is at-fault in the accident and the determination is supported by
a review of available information.� The bill also requires automobile insurers
to disclose any adverse rerating of an automobile insurance policy and include
certain information.�