Bill > S5027

This bill prohibits motor vehicle liability insurance policies from restricting the maximum recovery amount for different types of coverage and individuals. Specifically, the legislation ensures that any motor vehicle liability insurance policy cannot provide less coverage for permissive users, named insureds, listed drivers, resident relatives, or passengers than the maximum recovery limit established in the policy for bodily injury liability, property damage liability, and uninsured or underinsured motorist coverage. The bill mandates that the policy is considered to provide the maximum available coverage to any insured individual, regardless of whether they are an additional named insured, a named insured, or covered under multiple policies. This means that all individuals covered under the policy will be entitled to the same level of protection, preventing insurance companies from limiting recovery amounts based on an individual's specific status or relationship to the policy. The bill will take effect 90 days after enactment and will apply to automobile insurance policies initiated or renewed after that date, providing broader and more consistent insurance coverage for motor vehicle owners and users.

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https://www.njleg.state.nj.us/bill-search/2024/S5027