ASSEMBLY, No. 143

STATE OF NEW JERSEY

Introduced Pending Technical Review by Legislative Counsel

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Assemblyman WOLFE

An Act concerning rating systems for private passenger automobile insurance coverage.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. No later than 180 days following the effective date of this act, every rate filing for private passenger automobile insurance shall contain an appropriate reduction for personal injury protection coverage, bodily injury liability coverage, property damage coverage, and physical damage coverage for the successful completion, by the named insured or the principal operator of the insured automobile, if other than the named insured, of an approved motor vehicle defensive driving course pursuant to section 55 of P.L.1990, c.8 (C.17:33B-45). The reduction in premium charges shall be an amount justified by the insurer's actuarial experience, and shall be available to the insured for a three-year period beginning with the next succeeding policy period after the date of completion of an approved motor vehicle defensive driving course or until driver's license suspension or involvement in an at-fault accident, as defined in section 26 of P.L.1990, c.8 (C.17:33B-14).

    2. This act shall take effect immediately.

STATEMENT

    This bill requires private passenger automobile insurers to provide appropriate reductions in automobile insurance premiums for a three-year period to named insureds or principal operators of automobiles who have successfully completed an approved defensive driving course. The reduction would apply to personal injury protection coverage, bodily injury liability coverage, property damage coverage, and physical damage coverage.

    Insurers would be required to modify their rate filings to reflect the reduction mandated by this bill no later than 180 days following the effective date of the bill. The reduction in premium charges would be required to be justified by the insurer's actuarial experience. Insureds would lose this premium reduction prior to the expiration of the three-year discount period provided for in the bill if their drivers' licenses are suspended or they are involved in an at-fault accident.

Provides insurance premium reductions for completion of certain defensive driving courses.