SENATE, No. 1957

STATE OF NEW JERSEY

INTRODUCED MARCH 24, 1997

By Senator ZANE

An Act requiring notice of the insurer's policy regarding imposition of certain automobile insurance surcharges and supplementing P.L.1990, c.8 (C.17:33B-1 et seq.).

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

    1. Every insurer and insurance producer shall provide written notice to the automobile insurance policyholder of the insurer's policy regarding the imposition of merit rating surcharges in the event of an at-fault accident as defined in section 26 of P.L.1990, c.8 (C.17:33B-14) when the automobile insurance policy is issued or renewed. This notice shall be printed prominently, in 14-point bold type or larger, centered and at the top of the insurance policy or renewal declaration.

    2. This act shall take effect 180 days after the date of enactment.

STATEMENT

    This bill requires insurance companies, and insurance agents and brokers that provide automobile insurance policies, to notify the policyholder in writing when the policy is issued or renewed, of the insurance company's policy regarding the imposition of merit rating surcharges in the event of an "at-fault accident." The written notice is required to be placed prominently, in 14-point bold type or larger, at the top of the insurance policy or renewal declaration.

Requires notice of insurer's policy regarding surcharges for at-fault accidents.