ASSEMBLY, No. 2967

STATE OF NEW JERSEY

INTRODUCED MAY 12, 1997

By Assemblymen GARCIA, DALTON, Impreveduto, Wisniewski, Barnes, Cohen, Romano, Charles, Doria, Assemblywomen Friscia, Gill, Assemblymen Caraballo, Gusciora, Jones, Assemblywoman Turner and Assemblyman Greenwald

An Act concerning automobile insurance rates and repealing section 5 of P.L.1988, c.156.

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

    1. Section 5 of P.L.1988, c.156 (C.17:29A-44) is repealed.

    2. This act shall take effect immediately.

STATEMENT

    This bill eliminates the flex-rate provisions for automobile insurance premium rates, which allows automobile insurers to increase rates on an annual basis by 3 percent plus allowable Consumer Price Index (CPI) increases, without prior approval by the Commissioner of Banking and Insurance.

Repeals flex-rating for automobile insurance.