Bill > A368

Introduced Session

This bill amends the manner in which members are appointed to the board of directors of the New Jersey Automobile Insurance Risk Exchange (NJAIRE). NJAIRE was created to compensate automobile insurers doing business in New Jersey for claims paid and claims adjustment expenses due to the choice in tort thresholds permitted under private passenger automobile insurance policies issued in the State. Every insurer writing private passenger automobile insurance in the State is a member of the exchange and the board of directors governs the business affairs of the exchange. The board is comprised of both public members and insurance industry representatives. The NJAIRE board is comprised of 12 directors. Three public members are appointed directly, one each by the Governor, the President of the Senate and the Speaker of the General Assembly. The remaining nine members are appointed by the Governor, with the advice and consent of the Senate, from a list of names submitted by the Commissioner of Banking and Insurance. Eight of these members represent New Jerseys automobile insurers and trade associations. This bill revises this current system by granting to the Commissioner of Banking and Insurance the authority to appoint directly the nine members currently appointed by the Governor from the list submitted by the commissioner. By amending the statute in this way, this bill would simplify and expedite the appointment process. The work of the board is very technical in nature, and a full complement of board members appointed in a timely manner from among individuals familiar with private passenger automobile insurance in New Jersey will greatly benefit its operations.

AI Summary

Committee Categories

Elease Evans (D)*,  Lou Greenwald (D)*,  Gary Schaer (D)*,  Jack Conners (D), 

Received in the Senate, Referred to Senate Commerce Committee (on 03/15/2010)