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Bill > S270
NJ S270
NJ S270Provides that private passenger automobile insurance rating territories shall not place exposure in territory based on ZIP code under certain circumstances.
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 provides that private passenger automobile insurance rating territories shall not place an exposure in a territory based on ZIP code, when the ZIP code crosses a municipal boundary. Instead, the bill requires that when a territory includes exposures in two or more contiguous municipalities based on a single postal ZIP code, and the ZIP code therefore crosses a municipal boundary, the exposure shall be placed in a territory based on municipal boundary, not ZIP code, and in the territory in which the exposure automobile is garaged.
AI Summary
This bill modifies how private passenger automobile insurance territories are defined, specifically addressing situations where a single ZIP code spans across multiple municipal boundaries. Currently, insurance companies might use ZIP codes to assign vehicles to specific rating territories, which can affect insurance premiums. However, this bill mandates that if a ZIP code crosses a municipal boundary, the insurance exposure (meaning the risk associated with a particular policyholder) must be assigned to a territory based on the municipality where the insured automobile is garaged, rather than solely on the ZIP code. This change aims to ensure that insurance rates are more accurately reflect the local driving environment of the municipality where the car is kept, preventing potential unfairness that could arise from using a broader ZIP code that encompasses diverse areas.
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/S270 |
| BillText | https://pub.njleg.gov/Bills/2026/S0500/270_I1.HTM |
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