Bill > A5254

Introduced Session

This bill establishes the "Car Insurance Reduction Act" and modifies current law addressing requirements of automobile insurers for underwriting; rate calculations and reductions; and reporting requirements to the State. Under the bill, an automobile insurer will be required to include the driving characteristics of insureds and prohibit the use of an insured's credit history, education, or occupation in the formulation of underwriting rules. The bill also requires an automobile insurer to provide to each insured a detailed explanation of the rating plan used to determine the insured's premium, including whether factors not related to the insured's driving record were used. The explanation provided to the insured will be made available through the Internet website of the insurer. Finally, the bill provides that every automobile insurer will be required to allow a consumer to compare coverage options offered by the insurer, along with estimated premiums for each coverage option offered by the insurer, within the Internet website of the insurer. The bill requires private passenger automobile insurers to establish premium rate reductions for safe driving behavior. Insurers are allowed to use telematics systems to determine whether drivers are in compliance with the rate reduction requirements. The bill also requires the Department of Banking and Insurance, in consultation with the Office of the Insurance Fraud Prosecutor in the Department of Law and Public Safety, to issue a report concerning the activities of the department and the office and any recommendations relating to facilitating the detection of insurance fraud in New Jersey. The first report is to be issued no later than 18 months following the enactment of the bill and subsequent reports are to be issued every three years thereafter. The report is to include recommendations concerning the ways in which the sharing of information and data between and among State agencies and insurers may facilitate the detection of insurance fraud. Lastly, the bill requires insurers to provide to the Department of Banking and Insurance and the Office of the Insurance Fraud Prosecutor such information as is necessary to facilitate the detection of insurance fraud and the enforcement of the "New Jersey Insurance Fraud Prevention Act."

AI Summary

Committee Categories

Heather Simmons (D)*, 

Introduced, Referred to Assembly Financial Institutions and Insurance Committee (on 01/30/2025)

Official Document