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Bill > S2710
NJ S2710
NJ S2710Provides that private passenger automobile insurance rating territories shall not place exposure in territory based on ZIP code under certain circumstances.
summary
Introduced
02/15/2024
02/15/2024
In Committee
02/15/2024
02/15/2024
Crossed Over
Passed
Dead
01/12/2026
01/12/2026
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill provides that private passenger automobile insurance rating territories shall not place an exposure in a territory based on ZIP code, when the ZIP code crosses a municipal boundary. Instead, the bill requires that when a territory includes exposures in two or more contiguous municipalities based on a single postal ZIP code, and the ZIP code therefore crosses a municipal boundary, the exposure shall be placed in a territory based on municipal boundary, not ZIP code, and in the territory in which the exposure automobile is garaged.
AI Summary
This bill mandates that when private passenger automobile insurance companies determine territories for rating purposes, they cannot use a ZIP code if that ZIP code spans across a municipal boundary. Instead, if a single ZIP code covers parts of two or more adjacent towns or cities (municipalities), the insurance exposure must be assigned to a territory based on the specific municipality where the insured vehicle is garaged, rather than the broader ZIP code. This change aims to ensure that insurance rates are more accurately reflect the actual driving environment and associated risks based on municipal boundaries, preventing potential unfairness that could arise from using ZIP codes that don't align with local government divisions.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Commerce Committee (on 02/15/2024)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/S2710 |
| BillText | https://pub.njleg.gov/Bills/2026/S3000/2710_I1.HTM |
| BillText | https://pub.njleg.gov/Bills/2024/S3000/2710_I1.HTM |
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