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Bill > S479


NJ S479

Eliminates New Jersey Automobile Insurance Risk Exchange.


summary

Introduced
01/11/2022
In Committee
06/20/2022
Crossed Over
Passed
Dead
01/08/2024

Introduced Session

2022-2023 Regular Session

Bill Summary

This bill eliminates the New Jersey Automobile Insurance Risk Exchange. The New Jersey Automobile Insurance Risk Exchange (AIRE) was created by statute for the purpose of compensating insurer members of the exchange for claims paid for non-economic loss and claim adjustment expense which would not have been incurred had the less costly tort limitation option provided under statute been elected by the injured party filing a claim for non-economic loss. Membership in AIRE is required for every insurer licensed to transact private passenger automobile insurance in New Jersey, including all applicable residual market mechanisms. All AIRE assessments, expenses and costs are paid by New Jersey automobile insurance companies. The bill provides that any savings realized by an insurer licensed to transact private-passenger automobile insurance in this State through the elimination of AIRE, as determined by the Commissioner of Banking and Insurance, are required to be deposited into the "Pedestrian Safety Enforcement and Education Fund," and to be used to alleviate pedestrian safety problems.

AI Summary

This bill eliminates the New Jersey Automobile Insurance Risk Exchange (AIRE), a statutory entity that compensates insurers for claims paid for non-economic loss and claim adjustment expenses when the less costly tort limitation option is not elected. The bill requires any savings realized by insurers from the elimination of AIRE to be deposited into the "Pedestrian Safety Enforcement and Education Fund" to address pedestrian safety issues. The bill also repeals the statutory provisions related to AIRE and specifies that the act will take effect on the first day of the third month following enactment.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Reported from Senate Committee, 2nd Reading (on 06/20/2022)

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