Bill > S2941

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, 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. The bill also establishes standards for the Commissioner of Banking and Insurance to promulgate regulations governing the establishment of new rating territories, such as ensuring territories have a sufficient number of exposures to result in statistically credible experience and defining territories in a manner that minimizes the effect of variability of loss and avoids unfair inter-territorial subsidization.

Business and Industry