New Jersey Assembly Bill A1761

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22
• Report Pass: 12/5/22

Caption

Prohibits motor vehicle liability insurance policy from restricting full payment of recovery amounts under covered person's policy.

Impact

The implementation of A1761 would fundamentally alter the landscape of motor vehicle insurance in New Jersey. By mandating that insurers include comprehensive coverage provisions, the bill aims to ensure that individuals are adequately compensated in cases of accidents involving uninsured or underinsured drivers. The changes would promote greater financial security for policyholders while potentially leading to more equitable treatment across various insurance plans. This shift suggests a positive impact on consumer rights as it provides stronger safeguards against inadequate insurance coverage in the case of accidents.

Summary

Assembly Bill A1761 aims to amend existing laws concerning motor vehicle liability insurance policies in New Jersey by prohibiting restrictions on recovery amounts under a covered person's policy. Specifically, it amends law P.L.1968, c.385 (C.17:28-1.1 et seq.) to ensure that insurers do not limit the amounts recoverable for bodily injury and death liability. This bill is designed to improve protections for insured individuals affected by accidents caused by uninsured or underinsured motor vehicles, thereby enhancing the safety net for consumers in the automotive insurance market.

Sentiment

The sentiment surrounding Bill A1761 appears to lean positively among proponents who argue that enhanced insurance coverage is essential for protecting individuals in vulnerable situations. Supporters of the bill see it as a necessary step towards ensuring fairness within the insurance system, particularly for those involved in accidents with uninsured motorists. Conversely, there may be concerns from insurance providers regarding the potential for increased claims and liability costs, which could affect premium rates in the broader market.

Contention

While A1761 has garnered support for its consumer protections, some contention exists regarding its implications for insurance rates and provider responses. Critics, likely from the insurance sector, may argue that increasing mandatory coverage limits could drive up premiums, making insurance less affordable for average consumers. The debate centers around balancing adequate consumer protections while maintaining a competitive insurance marketplace. Such concerns necessitate careful consideration of potential economic impacts following the enactment of this bill.