Assemblyman GILBERT "WHIP" L. WILSON
District 5 (Camden and Gloucester)
Allows private passenger automobile usage information as rating factor in insurance underwriting.
CURRENT VERSION OF TEXT
An Act concerning certain automobile insurance underwriting rules, and amending P.L.1997, c.151.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 15 of P.L.1997, c.151 (C.17:29A-46.2) is amended to read as follows:
15. a. (1) Insurers shall put in writing all underwriting rules applicable to each rate level utilized pursuant to section 14 of P.L.1997, c.151 (C.17:29A-46.1). An insurer may take into account factors, including, but not limited to, driving record characteristics and private passenger automobile usage information obtained through vehicle monitoring devices, self-reporting requirements, or other means appropriate for underwriting and classification in formulating its underwriting rules; provided that no underwriting rule based on motor vehicle violations shall be formulated in such a manner as to assign any named insured to a rating tier other than the standard rating tier applicable to the insured's territory solely on the basis of accumulating four motor vehicle points or less. No underwriting rule shall operate in such a manner as to assign a risk to a rating plan on the basis of the territory in which the insured resides or any other factor which the commissioner finds is a surrogate for territory.
(2) Any private passenger automobile usage information obtained by an insurer from an insured through vehicle monitoring devices, self-reporting requirements, or other means shall be subject to the disclosure limitations and conditions established in section 13 of P.L.1985, c.179 (C.17:23A-13).
(3) An insurer which knowingly fails to transact automobile insurance consistently with its underwriting rules shall be subject to a fine of not less than $1,000 for each violation.
b. All underwriting rules applicable to each rate level as provided for in section 14 of P.L.1997, c.151 (C.17:29A-46.1) shall be filed with the commissioner and shall be subject to his prior approval. All underwriting rules shall be subject to public inspection. Except as provided in subsection d. of section 27 of P.L.1990, c.8 (C.17:33B-15), insurers shall apply their underwriting rules uniformly and without exception throughout the State, so that every applicant or insured conforming with the underwriting rules will be insured or renewed, and so that every applicant not conforming with the underwriting rules will be refused insurance.
c. An insurer with more than one rating plan for private passenger automobile insurance policies providing identical coverages shall not adopt underwriting rules which would permit a person to be insured for private passenger automobile insurance under more than one of the rating plans.
d. An insurer that revises its underwriting rules with respect to the assignment of insureds to rating tiers based on the number of accumulated motor vehicle points, as provided by subsection a. of this section, as amended by P.L.2003, c.89, shall certify to the commissioner that the revised rule will produce rates that are revenue neutral based upon the insurer's current coverages and book of business.
(cf: P.L.2003, c.89, s.40)
2. This act shall take effect on the 90th day next following enactment.
This bill allows private passenger automobile insurers to use motor vehicle usage information obtained through vehicle monitoring devices, self-reporting requirements, or other means appropriate for underwriting and classification in formulating their underwriting rules.
Vehicle monitoring technologies are able to track and record certain aspects of how a vehicle is driven, such as vehicle speed, mileage, brake application, engine throttle, and seatbelt usage. This bill allows private passenger automobile insurers to assess more accurately the risks and reduce insurance costs for safer drivers by accounting for usage information when formulating insurance policies.
This bill also requires that any data obtained by an automobile insurer through vehicle monitoring devices, self-reporting requirements, or other means shall be subject to the disclosure limitations and protections established in section 13 of P.L.1985, c.179 (C.17:23A-13).