Bill
Bill > S2254
NJ S2254
Repeals no-fault automobile insurance law and requires mandatory liability insurance law for motor vehicles.
summary
Introduced
01/09/2024
01/09/2024
In Committee
01/09/2024
01/09/2024
Crossed Over
Passed
Dead
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill repeals the compulsory no-fault automobile insurance law; changes the requirement for bodily injury and property damage liability insurance to at least $100,000 on account of injury to or death of one person and $200,000 on account of injury to or death of more than one person; and makes uninsured and underinsured motorist coverage compulsory, in the same amounts or limits as an insured's motor vehicle liability insurance coverage. With respect to uninsured and underinsured motor vehicle insurance, the bill requires claims disputes to be settled through binding arbitration. Additionally, the bill repeals the mandatory arbitration of certain automobile insurance claims in the courts, the take-all-comers law which requires insurers to insure all "good" drivers who apply, and the basic and special automobile insurance policies. Technical amendments to various statutory provisions to conform with these substantive reforms are accomplished by the bill, as well.
AI Summary
This bill repeals New Jersey's compulsory no-fault automobile insurance law and instead requires drivers to maintain minimum liability insurance coverage of $100,000 per person and $200,000 per accident for bodily injury, as well as $5,000 for property damage. It also makes uninsured and underinsured motorist coverage compulsory in the same amounts as the driver's liability coverage. The bill also repeals the mandatory arbitration of certain automobile insurance claims in the courts, the take-all-comers law which requires insurers to insure all "good" drivers who apply, and the basic and special automobile insurance policies. Claims disputes for uninsured and underinsured motorist coverage must now be settled through binding arbitration. This bill represents a significant shift away from New Jersey's previous no-fault automobile insurance system.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Commerce Committee (on 01/09/2024)
Official Document
bill text
bill summary
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bill summary
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bill summary
Document Type | Source Location |
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State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/S2254 |
BillText | https://pub.njleg.gov/Bills/2024/S2500/2254_I1.HTM |
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