SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE, No. 61

with committee amendments

STATE OF NEW JERSEY

DATED: JANUARY 18, 1996

      The Senate Commerce Committee reports favorably and with committee amendments Senate, No. 61.

      This bill, as amended, requires automobile insurers to reduce the number of automobile insurance eligibility points resulting in surcharges to insureds in a similar manner to that currently followed by the Division of Motor Vehicles with respect to motor vehicle points.

      Automobile insurers would be required to reduce an insured's automobile insurance eligibility points at the rate of: (a) three points for each 12-month period in which the insured has not committed any violation resulting in an assessment of automobile insurance eligibility points or the suspension of his license; (b) three points for successful completion of an approved license improvement course, except that no insured may receive point reduction credits for completion of the same or a similar course within two years of having completed the prior course; and (c) two points for the successful completion of an approved defensive driving course, except that no insured may receive point reduction credits for completion of an approved defensive driving course within five years of having previously completed an approved motor vehicle defensive driving course. No points shall be reduced below zero. No points for operating a motor vehicle under the influence of alcohol or drugs shall be reduced pursuant to the provisions of this bill and no points of an insured shall be reduced for completing a license improvement course or a motor vehicle defensive driving course pursuant to this bill unless that insured has the greater number of points under the policy.

      This bill applies to insurers writing private passenger automobile insurance in the voluntary market and to the personal automobile insurance plan (residual market).

      This bill was pre-filed for introduction in the 1996 session pending technical review. As reported, the bill includes the changes required by technical review which has been performed.