Lowers minimum amount of motor vehicle liability coverage for autocabs.

S4139

SENATE, No. 4139

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MAY 11, 2026

Sponsored by:

Senator� JOSEPH P. CRYAN

District 20 (Union)

SYNOPSIS

���� Lowers minimum amount of motor vehicle liability
coverage for autocabs.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning motor vehicle liability coverage for
autocabs 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 $300,000, 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 (6)
for an autocab, as defined pursuant to R.S.48:16-1, an amount or limit of
$200,000, 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)
, and (6)
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.� For purposes of paragraph
(5) of subsection a. of this section, "commercial motor vehicle"
shall also include commercially registered vehicles with a gross vehicle weight
rating of 10,001 or more pounds but less than 26,001 pounds.

(cf: P.L.2023, c.276, s.1)

���� 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
[
$1.5
million
]

$200,000
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.2023, c.276, s.2)

���� 3.���
This
act shall take effect immediately and shall apply to all automobile insurance
policies initiated or renewed on or after the date of enactment.

STATEMENT

���� This bill lowers the motor
vehicle liability coverage requirement for autocabs.� Under current law, the
owner of an autocab is required to maintain motor vehicle liability coverage of
at least $1.5 million to insure against loss resulting from liability imposed
by law for bodily injury, death, and property damage.� Under the bill, the
owner of an autocab is required to maintain motor vehicle liability coverage of
at least $200,000.�