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Bill > S2323
NJ S2323
NJ S2323Prohibits motor vehicle liability insurance policy from restricting full payment of recovery amounts under covered person's policy.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill prohibits a motor vehicle liability insurance policy from limiting the full payment of recovery amounts under a covered person's policy. Specifically, the bill prohibits a motor vehicle liability insurance policy from restricting the amount that may be recovered by a person insured under the insurance policy, whether or not an insured person is a named insured or a permissive user under the policy, to an amount less than the maximum recovery limit provided in the policy for bodily injury liability, property damage liability, uninsured and underinsured motorist coverage, and medical payments coverage. If the policy insures more than one private passenger automobile, the limits available to the permissive user shall be the limits associated with the vehicle used by the permissive user when the loss occurs.
AI Summary
This bill ensures that motor vehicle liability insurance policies cannot limit the full amount a person can recover under their policy, regardless of whether they are the primary policyholder (named insured) or a permitted driver (permissive user) of the vehicle. This means an insurer cannot restrict recovery to less than the maximum limits set in the policy for bodily injury, property damage, uninsured/underinsured motorist coverage, and medical payments. If a policy covers multiple cars, a permissive user's recovery limit will be based on the specific car they were using when the incident occurred. The bill defines a "permissive user" as someone who has been given permission to drive a vehicle by its owner but is not listed on the insurance policy.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Commerce Committee (on 01/13/2026)
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/2026/S2323 |
| BillText | https://pub.njleg.gov/Bills/2026/S2500/2323_I1.HTM |
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