ASSEMBLY, No. 1785

 

STATE OF NEW JERSEY

 

INTRODUCED MARCH 25, 1996

 

 

By Assemblywoman VANDERVALK

 

 

An Act concerning the nonrenewal of automobile insurance policies and amending P.L.1968, c.158.

 

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

 

    1. Section 4 of P.L.1968, c.158 (C.17:29C-9) is amended to read as follows:

    4. No insurer shall fail to renew a policy unless it shall mail or deliver to the named insured, at the address shown in the policy, at least [20] 60 days' advance notice of its intention not to renew. This section shall not apply:

    (a) If the insurer has manifested its willingness to renew; nor

    (b) In case of nonpayment of premium;

    provided that, notwithstanding the failure of an insurer to comply with this section, the policy shall terminate on the effective date of any other insurance policy with respect to any automobile designated in both policies.

    If a named insured qualifies for his insurer's non-standard rate level after having been insured at the standard rate level, the insurer shall mail or deliver to the named insured, at the address shown in the policy, at least 60 days' advance notice of its intention to renew at the non-standard rate level.

    Renewal of a policy shall not constitute a waiver or estoppel with respect to grounds for cancellation which existed before the effective date of such renewal.

(cf: P.L.1968, c.158, s.4)

 

    2. This act shall take effect on the 90th day following enactment.

 

STATEMENT

 

    This bill provides that automobile insurers must give the named insureds at least 60 days' notice of nonrenewal of an automobile insurance policy. This notice provision applies to regular nonrenewals and to those internal nonrenewals by insurers which result in insureds being nonrenewed when an insurer shifts these insureds from policies at the standard rate level to policies at the non-standard rate level.

 

 

 

Requires auto insurers to give 60 days' notice of policy nonrenewal.