New Jersey Assembly Bill A3061

New Jersey 2022-2023 Regular Session

• Introduced: 2/28/22
• Refer: 2/28/22

Caption

Prohibits use of volunteer driving activities in underwriting for private passenger automobile insurance; revises charitable immunity statute as applied to volunteer drivers.

Impact

The bill carries significant implications for state laws regarding automobile insurance and charitable activities. It amends New Jersey's existing charitable immunity statute to provide limited liability for nonprofit organizations in cases of accidents involving volunteer drivers. This amendment reduces the exposure of volunteer drivers and their associated organizations to large liability claims, thus empowering them to offer essential transportation services without the fear of financial jeopardy from unforeseen incidents. Additionally, the bill ensures that insurance companies cannot deny payments for claims simply because the services rendered were compensated minimally or classified under different categories.

Summary

A3061 is a legislative proposal aimed at protecting volunteers who use their private passenger vehicles to provide services to those in need from negative repercussions on their automobile insurance. This bill specifically prohibits insurance companies from using volunteer driving activities as a factor in determining eligibility or rating for automobile insurance policies. By ensuring that volunteers are not penalized for their involvement in these altruistic activities, the legislation encourages community service and support for nonprofit organizations reliant on volunteer drivers.

Contention

While the intent of A3061 is to foster volunteerism and support nonprofit organizations, it does raise concerns among some stakeholders about potential abuse of the system. Critics argue that removing underwriting factors could lead to increased insurance premiums for all drivers as insurers may respond by raising rates to cover the perceived risks. There is also apprehension that this measure might dilute insurance standards, ultimately affecting the sustainability and reliability of automobile insurance for all drivers. The balance between encouraging volunteerism and protecting the insurance market remains a point of debate among lawmakers.