Bill
Bill > S4156
NJ S4156
Prohibits automobile insurance policies from disclaiming uninsured or underinsured motorist coverage based on use of motor vehicle owned by insured's employer.
summary
Introduced
02/25/2025
02/25/2025
In Committee
02/25/2025
02/25/2025
Crossed Over
Passed
Dead
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill prohibits an automobile insurance policy from disclaiming uninsured or underinsured motorist coverage based on the insured's operation, maintenance, or use, for the business purposes of the insured's employer, of a motor vehicle that is owned by the insured's employer. The prohibition against disclaimer applies even if the insured regularly uses the employer's motor vehicle. This bill is a response to multiple case law decisions, including Venters v. Selected Risks Insurance Company, Edouard v. GEICO, and Siemietkoski v. Velasquez-Flores. Those cases allow insurers to deny coverage, preventing insureds from recovering against their uninsured or underinsured motorist coverage when injured in a motor vehicle accident with an uninsured or underinsured driver while using an employer's vehicle.
AI Summary
This bill prohibits automobile insurance companies from denying uninsured or underinsured motorist coverage when an employee is driving a vehicle owned by their employer for business purposes. Specifically, the legislation prevents insurers from disclaiming coverage even if the employee regularly uses the employer-owned vehicle. This change is a direct response to several court cases that previously allowed insurance companies to deny coverage in such situations, which left injured workers without compensation after accidents with uninsured or underinsured drivers. The bill amends existing New Jersey insurance law by adding a new provision that explicitly protects employees, ensuring they can still receive uninsured motorist coverage when driving a work-owned vehicle. The legislation takes effect immediately and applies to all automobile insurance policies issued or renewed after its enactment, providing broader protection for workers who may need to use their employer's vehicles as part of their job responsibilities.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Commerce Committee (on 02/25/2025)
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/S4156 |
| BillText | https://pub.njleg.gov/Bills/2024/S4500/4156_I1.HTM |
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