Provides that automobile insurers may act as primary insurer and pursue claims against health insurers under certain circumstances.
Impact
The bill is designed to clarify the roles and responsibilities of automobile and health insurers regarding medical expense benefits. By allowing automobile insurers to take the lead in claims against health insurers, the legislation seeks to enhance the efficiency of the claims process for individuals injured in accidents. It modifies existing laws governing personal injury protection coverage, thus impacting the way benefits are coordinated between these two insurance domains, which may lead to improved claim handling and faster access to medical benefits for policyholders.
Summary
Senate Bill 2277 introduces provisions allowing automobile insurers in New Jersey to act as the primary insurer in circumstances where health insurance has been designated as primary coverage for medical expenses following an automobile accident. It specifies that if an insured selects their health insurance as the primary coverage, the automobile insurer must notify the health insurance provider and may provisionally pay the medical expenses. This aims to streamline the process of claims and mitigate complexities that arise from determining the primary insurer's responsibilities after an accident.
Contention
While the bill aims to facilitate quicker medical care post-accident, there may be contentious discussions surrounding the potential financial implications for health insurance providers who may face increased costs due to the additional claims. Concerns could also arise among policyholders regarding whether their medical expenses would be adequately covered during the transition of primary insurer responsibilities. Stakeholders in the insurance industry may debate the fairness of the changes, particularly regarding how the rights to subrogation—or the right to claim reimbursement from the primary insurer—will be administered post-accident. Overall, the bill introduces a significant shift in the balance of coverage responsibilities between automobile and health insurers.
Eliminates certain personal injury protection options available under standard automobile insurance policies; requires $250,000 of medical expense benefits under standard and basic automobile insurance policies.
Eliminates certain personal injury protection options available under standard automobile insurance policies; requires $250,000 of medical expense benefits under standard and basic automobile insurance policies.
Authorizes purchaser of automobile by private sale to operate automobile for three-day period following purchase without permanent registration or transfer of title.
Authorizes purchaser of automobile by private sale to operate automobile for three-day period following purchase without permanent registration or transfer of title.
Authorizes purchaser of automobile by private sale to operate automobile for three-day period following purchase without permanent registration or transfer of title.
Authorizes purchaser of automobile by private sale to operate automobile for three-day period following purchase without permanent registration or transfer of title.