[Second Reprint]

SENATE, No. 1650

STATE OF NEW JERSEY

INTRODUCED OCTOBER 28, 1996

By Senators BENNETT, KOSCO, Girgenti,

Martin, Kyrillos and Bryant

An Act concerning reduced insurance rates for private passenger automobiles in certain cases and supplementing P.L.1990, c.8 (C.17:33B-1 et seq.) ¹and amending P.L.1995, c.380¹.

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

    1. (New section) a. No later than 180 days following the effective date of this act, every rate filing for private passenger automobile insurance shall contain at least a five percent reduction for personal injury protection coverage, bodily injury liability coverage, property damage coverage, and physical damage coverage for the successful completion, by the named insured or the principal operator of the insured automobile, if other than the named insured, of a classroom course conducted in accordance with the requirements promulgated pursuant to subsection b. of this section by a commercial drivers' school approved by the Director of the Division of Motor Vehicles and licensed pursuant to the provisions of P.L.1951, c.216 (C.39:12-1 et seq.).

    ²[Only persons] A person² who ²[have not] has² successfully completed a high school driver education classroom course conducted by a certified teaching staff member pursuant to ¹[N.J.S.18A:26-29] N.J.S.18A:26-2^{1 2}and who subsequently completes a classroom course pursuant to the requirements of this section also² shall be eligible for the reduction authorized under this section.

    The reduction shall be available to the insured for a three-year period beginning with the next succeeding policy period after the date of the successful completion of the approved course.

    The reduction authorized under this section may be renewed or extended beyond that three year period; provided, however, an insurer may terminate immediately the reduction provided to any person whose driver's licence is suspended or who, within the three year period, accumulates four or more motor vehicle penalty points assessed under the provisions of P.L.1982, c.43 (C.39:5-30.5).

    b. The Director of the Division of Motor Vehicles shall promulgate, pursuant to the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations for the provision of driver education courses offered by commercial drivers' schools pursuant to R.S.39:3-10. These regulations shall prescribe class size, standards for satisfactory completion and curricula for courses given in ¹a¹ drivers' school licensed pursuant to the provisions of P.L.1951, c.216 (C.39:12-1 et seq.). The course shall be at least six hours in duration and shall be designed to promote safe driving, highway courtesy, and an understanding of and respect for the State's motor vehicle laws. The course shall include instruction in the dangers of and penalties for drunk and drugged driving and shall not be combined with any other program.

    The director shall chair and appoint representatives from the Driving School Association of New Jersey, the Office of Highway Traffic Safety in the Department of Law and Public Safety, the Department of Education, the Department of Transportation, the New Jersey State Safety Council, and the Automobile Association of America as a task force to assist in the development of the rules and regulations authorized under the provisions of this subsection.

    ¹2. Section 1 of P.L.1995, c.308 (C.17:33B-45.1) is amended to read as follows:

    1. a. Within 180 days of the effective date of this act, every rate filing for private passenger automobile insurance shall contain [an appropriate] at least a five percent reduction for personal injury protection coverage, bodily injury liability coverage, property damage coverage, and physical damage coverage for the successful completion, by the named insured or the principal operator of the insured automobile, if other than the named insured, of an approved motor vehicle defensive driving course pursuant to section 55 of P.L.1990, c.8 (C.17:33B-45). The reduction in premium charges shall be an amount justified by the insurer's actuarial experience, and shall be available to the insured for a three-year period beginning with the next succeeding policy period after the date of completion of an approved motor vehicle defensive driving course or until driver's license suspension or the accumulation of four or more motor vehicle points, whichever occurs earlier. Subsequent completions of an approved motor vehicle defensive driving course shall entitle the insured to the five percent reduction for additional three year periods.

    b. [The provisions of subsection a. of this section shall not apply to insureds who qualify for the reduction in premium charges after the first day of the 48th month following the enactment date of this act.] Deleted by amendment, P.L. , c. (C. ) (now pending before the Legislature as this bill).

    c. An insured who qualified for the reduction in premium charges pursuant to section 1 of P.L. , c. (C. ) (now pending before the Legislature as this bill) may, after the expiration of the three year period, qualify for the reduction in premium charges pursuant to this act upon successful completion of an approved motor vehicle defensive driving course.¹

(cf: P.L.1995, c.308 s.1)

    ¹[2.] 3.¹ This act shall take effect on the first day of the six month following enactment, but the Director of the Division of Motor Vehicles and the Commissioner of Insurance may take such anticipatory administrative action in advance as shall be necessary for the implementation of this act.

Requires insurance premium reductions for completion of certain driving courses.