Bill > S479

This bill establishes consumer choice in automobile insurance by introducing two new types of Personal Injury Protection (PIP) policies: "Full PIP" and "Hybrid PIP." Full PIP policies, with a minimum coverage of $20,000, do not cover pain and suffering, while Hybrid PIP policies, with a $2,000 monetary threshold and $8,000 coverage limit, do cover pain and suffering, similar to the system in place before 2008. Drivers will be required to choose between these options upon their first renewal of insurance after the bill's effective date, and this choice will bind all insureds on the policy and their resident relatives. The bill also introduces an optional "economic-loss litigation option" for Full PIP insureds, allowing them to pursue claims against their own insurer for uncompensated economic losses (like medical expenses and lost earnings) beyond their PIP coverage, but not for pain and suffering. Insurers will be required to offer informational programs to help consumers understand these choices and their ramifications, and standardized forms will be used to document the chosen policy. The bill also clarifies claim priority and allows for higher coverage limits for both PIP and economic-loss litigation coverage.