Bill > A2592

Introduced Session

This bill revises the anti-fraud provisions established by the "Fair Automobile Insurance Reform Act" concerning pre-insurance vehicle inspection. The bill establishes standard waivers applicable to all insurers providing physical damage coverage. The bill also requires the Department of Banking and Insurance to develop a standard waiver application and establish procedures for the evaluation of new waiver submission requests beyond the standardized list created in the bill. The standardized waivers seek to prevent insurance fraud through the exploitation of waiver inconsistency. The bill also seeks to reduce the high volume of fraud prosecutions stemming from pre-existing physical damage insurance fraud, which constitutes a significant portion of Department of Banking and Insurance fraud prosecutions. In addition, the department is also required to conduct market conduct examinations regularly. Under the bill, an insurer may authorize the insured to conduct a self-inspection required or permitted pursuant to the bill. An insured may conduct the self-inspection at any time and place reasonably convenient to the named insured. The insured is to conduct a self-inspection using the insurer's authorized representative's self-inspection mobile application. If the insured fails to perform, prior to expiration of the deferral period authorized pursuant to N.J.A.C.11:3-36.5, the automobile inspection services provided pursuant to this section, the physical damage inspection requirement is to be conducted by the insurer's authorized representative and the insurer is required to so notify the named insured.

AI Summary

Committee Categories

Clinton Calabrese (D)*,  Jessica Ramirez (D)*, 

Introduced, Referred to Assembly Financial Institutions and Insurance Committee (on 01/09/2024)

Official Document