FISCAL NOTE TO

[First Reprint]

ASSEMBLY, No. 1759

STATE OF NEW JERSEY

DATED: JUNE 13, 1996

      Assembly Bill No.1759 (1R) of 1996 requires the Commissioner of Insurance to review the overall availability of automobile insurance in the State and designate, by regulation, those urban-based geographic areas where increased access to automobile insurance should be encouraged. These areas are to be known as automobile insurance urban enterprise zones, and would be subject to periodic review and update by the commissioner. To assist in this review, the commissioner is authorized to appoint an advisory committee composed of representatives of automobile insurers, insurance producers and urban area residents. The bill further authorizes the commissioner to establish standards that must be met in order to qualify an insurer as eligible to participate in the automobile insurance urban enterprise zone program.

      Lastly, the bill requires the commissioner to study the impact of the territorial rate caps imposed under existing law and to report the department's findings to the Governor and the Legislature within twelve months following enactment of the bill.

      The Department of Insurance estimates that implementation of this legislation will have no fiscal impact on the State budget, as the responsibilities of the department, including the promulgation of regulations, the monitoring of qualified insurers, and the one-time study of territorial rate caps, can be accomplished utilizing existing departmental staff.

      The Office of Legislative Services concurs with the department's assessment of the bill.

This fiscal note has been prepared pursuant to P.L.1980, c.67.