ASSEMBLY, No. 1468

STATE OF NEW JERSEY

INTRODUCED FEBRUARY 5, 1996

By Assemblyman GARCIA

An Act concerning automobile insurance and supplementing P.L.1990, c.8 (C.17:33B-1 et seq.)

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

    1. For purposes of this act:

    "Insurer" means an insurance company authorized or admitted to transact private passenger automobile insurance in this State.

    "Market share" means the proportion that an insurer's written premiums for New Jersey automobile insurance business in the voluntary market during a calendar year bears to the total written premiums of all insurers for New Jersey automobile insurance business in the voluntary market during that same calendar year.

    "Urban rating territory" means a rating territory in which at least one municipality is located that:

    (1) has a population density of 9,000 or more persons per square mile, according to the latest published federal decennial census report; and

    (2) has been designated as an "urban center" under the New Jersey State Development and Redevelopment Plan adopted by the State Planning Commission in June of 1992.

    2. a. Every insurer that has a market share in this State of 2% or more in the immediately preceding calendar year shall have in each urban rating territory, its employee or a resident producer licensed pursuant to P.L.1987, c.293 (C.17:22A-1 et seq.) with casualty authority to act as its agent to solicit, negotiate or effect automobile insurance contracts on its behalf, including the authority to countersign automobile insurance contracts on its behalf.

    b. The employee or resident producer of the insurer shall be available to transact business pursuant to subsection a. of this section during normal business hours in an office that is located in geographic area within the urban rating territory that is readily accessible to the public.

    3. The commissioner shall, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), promulgate rules and regulations as may be necessary to effectuate the purposes of this act.

    4. This act shall take effect 180 days after enactment, but the commissioner may take such anticipatory action as may be necessary to effectuate the purposes of the act.

STATEMENT

    The bill requires automobile insurers with a market share of 2% or more in this State to have an employee or resident producer available in each urban rating territory to transact business during normal business hours. The bill requires the office of the employee or resident employee to be located in a geographic area, within the urban rating territory, that is readily available to the public. The bill defines an "urban rating territory" as a rating territory in which at least one municipality is located which has a population density of 9,000 or more persons per square mile and which has been designated as an "urban center" under the New Jersey State Development and Redevelopment Plan adopted by the State Planning Commission in June of 1992.

Requires certain automobile insurers to maintain sales representation in urban rating territories.