Bill
Bill > A3879
NJ A3879
NJ A3879Revises territorial rating plans used by insurers writing private passenger automobile insurance.
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 revises the territorial rating plans used by insurers writing private passenger automobile insurance in this State. Specifically, the bill requires the Commissioner of Banking and Insurance to establish rating territories that are geographic areas of the State defined by contiguous zip code+4, that follow municipal boundaries as closely as possible. The bill provides that the maximum number of territories in any territorial map may not exceed 100 territories. Currently, regulations established by the Department of Banking and Insurance provide for rating territories that are geographic areas of the State defined by contiguous zip code, with the maximum number of territories in any territorial map not exceeding 50 territories. By allowing rating territories to be defined by zip code+4, and increasing the maximum number of territories in the territorial map, insurers will be able to take a more detailed, granular approach to the territorial assignment of risk for automobile insurance.
AI Summary
This bill revises how insurance companies define geographic areas, called "territories," for setting rates on private passenger automobile insurance. Currently, these territories are based on contiguous zip codes and there can be a maximum of 50 territories. This bill allows insurers to use more specific geographic definitions, known as "zip code+4," which are more detailed than just a zip code, and increases the maximum number of territories allowed to 100. The goal is to enable insurers to more precisely assess the risk associated with driving in different areas, leading to more granular and potentially fairer pricing for car insurance. The bill also clarifies that these new territorial definitions should follow municipal boundaries as closely as possible and emphasizes that territories should be created based on actual driving environment differences and loss experience, not for marketing purposes or to unfairly shift costs between different areas.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced, Referred to Assembly Financial Institutions and Insurance 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/A3879 |
| BillText | https://pub.njleg.gov/Bills/2026/A4000/3879_I1.HTM |
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