ASSEMBLY INSURANCE COMMITTEE

STATEMENT TO

ASSEMBLY, No. 2717

STATE OF NEW JERSEY

DATED: MAY 5, 1997

      The Assembly Insurance Committee reports favorably Assembly Bill No. 2717.

      This bill amends the statute which requires insurers authorized to transact or transacting automobile or motor vehicle insurance business in this State, or controlling or controlled by an insurer authorized to transact or transacting insurance business in this State, to provide to the out-of-state insureds who they insure for liability insurance coverage the same automobile or motor vehicle insurance coverage required of New Jersey drivers whenever the automobile or motor vehicle insured under the policy is used or operated in this State. This bill clarifies that the controlling or affiliated insurer must also be transacting automobile or motor vehicle insurance business in this State to be subject to the provisions of the statute.