ASSEMBLY, No. 2876

STATE OF NEW JERSEY

INTRODUCED MAY 1, 1997

By Assemblymen DALTON and GARCIA

An Act concerning automobile insurance rates.

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

    1. a. Notwithstanding any other provision of law to the contrary, rates and premiums for private passenger automobile insurance shall be determined by the application of the following factors in decreasing order of importance:

    (1) The insured's driving safety record, including motor vehicle points as provided in Title 39 of the Revised Statutes, at-fault accidents and convictions pursuant to R.S.39:4-50 or section 2 of P.L.1981, c.512 (C.39:4-50.4a) or offenses of a substantially similar nature committed in another jurisdiction;

    (2) The number of miles the insured drives annually;

    (3) The type of private passenger automobile driven;

    (4) Such other factors as the Commissioner of Banking and Insurance may adopt by regulation which have a substantial relationship to the risk of loss. The regulations shall also set forth the respective weight to be given to each factor in determining automobile insurance rates and premiums.

    b. Notwithstanding any provision of subsection a. of this section to the contrary, rates and premiums for private passenger automobile insurance shall not be determined, in whole or in part, directly or indirectly, upon the age, gender or marital status of the persons insured.

    c. The commissioner shall, no later than January 1, 1998, promulgate a plan providing for the implementation of the provisions of subsections a. and b. of this section which shall take effect no later than one year following the date of promulgation.

    2. This act shall take effect immediately.

STATEMENT

    This bill provides that rates and premiums for private passenger automobile insurance shall be determined only on certain factors, including: the insured's driving safety record; the number of miles driven annually; the type of automobile driven; and such other factors as the Commissioner of Banking and Insurance may adopt by regulation which have a substantial relationship to the risk of loss. The bill prohibits the use of age, gender or marital status as rating factors.

    In addition, the bill provides that the commissioner shall promulgate a plan providing for the implementation of this rating system, which shall take effect no later than one year following the date of the plan's promulgation.

Establishes system for determining automobile insurance rates.