Bill > S411

Introduced Session

This bill requires automobile insurers to provide certain information regarding premiums when an insured elects medical expense benefits in an amount of $15,000 as part of personal injury protection coverage. Specifically, the bill requires the insurer to, prior to the insured electing medical expense benefits coverage of $15,000, provide to the insured, in writing, the exact dollar amount that the insured's premium is reduced by electing the $15,000 coverage in comparison to electing the $50,000 coverage. The insured must acknowledge receipt of this information in writing and affirmatively elect the $15,000 coverage. Under current law, in addition to the default of $250,000, insurers must provide coverage options for medical expense benefits in amounts of $150,000, $75,000, $50,000 or $15,000 per person per accident. If none of these medical expense benefits options is affirmatively chosen in writing, the policy must provide $250,000 medical expense benefits coverage. It has come to the sponsor's attention that in many situations, the minimum option of $15,000 does not provide adequate coverage and also may not save a significant amount for the insured on the policy premium. Therefore, this bill is intended to ensure that insureds make an informed decision when deciding on $15,000 in PIP coverage and understand the exact dollar amount that is saved on their premium when making that selection.

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Joe Pennacchio (R)*, 

Introduced in the Senate, Referred to Senate Commerce Committee (on 01/09/2018)