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Bill > S3899


NJ S3899

Prohibits motor vehicle liability insurance policy from restricting full payment of recovery amounts under covered person's policy.


summary

Introduced
06/10/2021
In Committee
06/10/2021
Crossed Over
Passed
Dead
01/11/2022

Introduced Session

2020-2021 Regular Session

Bill Summary

This bill prohibits a motor vehicle liability insurance policy from limiting the full payment of recovery amounts under a covered person's policy. Specifically, the bill prohibits a motor vehicle liability insurance policy from restricting the amount that may be recovered by a person insured under the insurance policy, whether or not an insured person is a named insured or a permissive user under the policy, to an amount less than the maximum recovery limit provided in the policy for bodily injury liability, property damage liability, uninsured and underinsured motorist coverage, and medical payments coverage. If the policy insures more than one private passenger automobile, the limits available to the permissive user shall be the limits associated with the vehicle used by the permissive user when the loss occurs.

AI Summary

This bill prohibits a motor vehicle liability insurance policy from limiting the full payment of recovery amounts under a covered person's policy. Specifically, it prohibits the policy from restricting the amount that may be recovered by a person insured under the policy, whether or not the person is a named insured or a "permissive user" (someone granted temporary permission to operate the vehicle), to an amount less than the maximum recovery limit provided in the policy for bodily injury liability, property damage liability, uninsured and underinsured motorist coverage, and medical payments coverage. If the policy covers more than one private passenger vehicle, the limits available to the permissive user will be the limits associated with the vehicle used when the loss occurred. The bill does not preclude insurers from enforcing applicable policy exclusions, and any recovery is limited to damages actually sustained.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Introduced in the Senate, Referred to Senate Commerce Committee (on 06/10/2021)

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