Bill
Bill > A5445
NJ A5445
Prohibits automobile insurance policies from disclaiming uninsured or underinsured motorist coverage based on use of motor vehicle owned by insured's employer.
summary
Introduced
03/17/2025
03/17/2025
In Committee
03/17/2025
03/17/2025
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 addresses a specific issue in automobile insurance by prohibiting 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 bill adds a new provision to existing New Jersey insurance law that prevents insurers from disclaiming coverage based solely on the fact that an employee is using an employer-owned vehicle, even if the employee regularly uses that vehicle for work. This change is a direct response to previous court cases that allowed insurance companies to deny coverage in such situations, potentially leaving employees without financial protection if they are injured in an accident while driving a company-owned vehicle. The bill ensures that employees will have the same level of uninsured and underinsured motorist coverage when using an employer's vehicle as they would have with their own personal vehicle, effectively closing a potential insurance coverage loophole that could leave workers vulnerable in the event of an accident.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced, Referred to Assembly Financial Institutions and Insurance Committee (on 03/17/2025)
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/A5445 |
| BillText | https://pub.njleg.gov/Bills/2024/A5500/5445_I1.HTM |
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