ASSEMBLY COMMITTEE SUBSTITUTE FOR
SENATE, No. 1650 and ASSEMBLY, No. 2408
STATE OF NEW JERSEY
ADOPTED NOVEMBER 6, 1997
Sponsored by Senators BENNETT, KOSCO, Girgenti,
Martin, Kyrillos, Bryant, Assemblymen ROCCO, LeFEVRE, GARRETT, Barnes, Garcia, and Assemblywoman Buono
An Act concerning reduced insurance rates for private passenger automobiles in certain cases, supplementing P.L.1990, c.8 (C.17:33B-1 et seq.) and amending P.L.1995, c.308.
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: (1) 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.); or (2) a high school driver education classroom course conducted by a certified teaching staff member pursuant to N.J.S.18A:26-2.
Only a person who is a first-time driver who has successfully completed a classroom course pursuant to the requirements of this section 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; provided, however, an insurer may terminate immediately the reduction provided to any person whose driver's license 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 establishing the requirements of a classroom course offered by a commercial drivers' school. These regulations shall prescribe class size, curricula and standards for satisfactory completion of a course given in a 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 driving under the influence of alcohol or drugs and shall not be combined with any other program. In order to qualify as an approved course, the effectiveness of the course in terms of either reduced moving violation convictions or accident involvement, or both, by persons attending the classroom course shall be demonstrated to the director.
The director shall chair and appoint representatives from the Driving School Association of New Jersey, the Division 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.
c. 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 effective date of this act.
d. The Commissioner of Banking and Insurance may suspend an insurer's obligation to provide the premium reduction required pursuant to subsection a. of this section, if the commissioner, in her discretion, determines that compliance with this requirement will result in an insurer's financial condition becoming unsafe or unsound.
2. 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 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.
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.
c. An insured who qualifies for the reduction in premium charges pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill) may, after the expiration of the three-year period provided by that section, qualify for the reduction in premium charges pursuant to subsection a. of this section upon successful completion of an approved motor vehicle defensive driving course.
(cf: P.L.1995, c.308, s.1)
3. This act shall take effect on the first day of the sixth month following enactment, but the Director of the Division of Motor Vehicles and the Commissioner of Banking and Insurance may take such anticipatory administrative action as shall be necessary for the implementation of this act.
Requires automobile insurance premium reductions for completion of certain driving courses.