SENATE, No. 1663

STATE OF NEW JERSEY

INTRODUCED OCTOBER 28, 1996

By Senators CASEY and ADLER

An Act concerning notice of certain at-fault motor vehicle accidents.

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

    1. As used in this act:

    "At-fault accident" means an at-fault accident as defined in section 26 of P.L.1990, c.8 (C.17:33B-14) and for which the operator is at least proportionately responsible based on the number of vehicles involved. An operator is proportionately responsible if 50 percent responsible for an accident involving two vehicles; if 33 1/3 percent responsible for an accident involving three vehicles; and so on. An at-fault accident shall not include the following:

    (1) An accident in which the motor vehicle owned or operated by the insured or other operator insured under the policy was lawfully parked;

    (2) An accident in which the motor vehicle was struck by a hit and run operator, if the accident was reported to the proper authorities within 24 hours;

    (3) An accident in connection with which the operator insured under the policy was not convicted of a moving traffic violation and the operator of another vehicle involved in that accident was so convicted;

    (4) Physical damage losses that are other than collision;

    (5) An accident in which the motor vehicle was struck in the rear by another vehicle and the operator insured under the policy was not convicted of a moving violation in connection with the accident; or

    (6) An accident occurring as a result of operation of any motor vehicle in response to an emergency if the operator at the time of the accident was responding to the call to duty as a paid or volunteer member of any police or fire department, first aid or rescue squad or any law enforcement agency.

    "Insurer" means any insurer authorized or admitted to write motor vehicle insurance in this State.

    2. If an operator of a motor vehicle is involved in an accident and it is determined that he is responsible for an at-fault accident, that operator's insurer shall notify the operator within 10 days of that determination.

    3. a. The Commissioner of Banking and Insurance shall establish procedures for resolving complaints of operators who believe that they have been improperly determined to be responsible for an at-fault accident, including procedures for a written appeal to the commissioner.

    b. If either the insurer or the operator disagrees with a determination of the commissioner under this section, the commissioner, if requested to do so by either party, shall proceed to hear the matter as a contested case.

    c. No insurer shall surcharge an insured for an at-fault accident

while the matter is in dispute pursuant to subsection a. or b. of this section.

    4. This act shall take effect on the 90th day following enactment and shall apply to any motor vehicle accident occurring on or after the effective date.

STATEMENT

    This bill requires insurers to notify operators who have been determined to be responsible for an at-fault motor vehicle accident within 10 days of the determination. Currently, the only such notice an insured normally receives is when he is surcharged for an at-fault accident on his premium notice at the time of renewal. Current procedure does not allow the insured to appeal a determination of fault at the time it is made. The bill provides that the Commissioner of Banking and Insurance establish procedures for insureds to appeal such determinations of fault.