Bill > S4563

This bill revises the territorial rating regulations for private passenger automobile insurance in New Jersey by updating how insurers define and create insurance rating territories. Specifically, the bill requires the Commissioner of Banking and Insurance to establish rating territories using contiguous zip code+4 areas that closely follow municipal boundaries, expanding the current system which previously used only contiguous zip codes. The bill increases the maximum number of territories in a territorial map from 50 to 100, allowing insurers to create more precise and granular risk assessments. The new territorial definitions must continue to meet existing standards, such as recognizing similarities and differences in driving environments, ensuring statistical credibility of data, accounting for traffic patterns, and preventing unfair discrimination. By using more detailed zip code information and allowing more territories, insurers can create more nuanced and potentially more accurate pricing models that better reflect local driving conditions and risk factors. The bill will take effect 120 days after enactment and will apply to territorial rating plans filed after that date.

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https://www.njleg.state.nj.us/bill-search/2024/S4563