New Jersey Assembly Bill A4271

New Jersey 2022-2023 Regular Session

• Introduced: 6/16/22
• Refer: 6/16/22

Caption

Prohibits selection of health insurance coverage as primary under personal injury protection coverage.

Summary

Assembly Bill A4271 seeks to amend current legislation concerning personal injury protection coverage in automobile insurance by prohibiting the selection of health insurance as the primary payer. Instead, the bill mandates that the personal injury protection (PIP) coverage of the named insured will serve as the primary coverage, extending this requirement to resident relatives who are not named insureds on their own automobile insurance policies. This change aims to clarify the hierarchy of insurance coverage in personal injury claims, ensuring that only one insurance policy is utilized for coverage in the event of an automobile accident. The primary goal of A4271 is to simplify the claims process for individuals who sustain injuries in automobile accidents. The current law allows for the overlapping of health insurance and PIP coverage, which can lead to complications and extended disputes regarding which insurance should cover medical expenses. By making the PIP coverage the primary source, the bill intends to reduce legal ambiguities and streamline injury compensation processes, thereby alleviating the burden on both insured individuals and insurance companies dealing with claims handling. However, the bill has sparked debates regarding its potential impacts on consumers and the insurance marketplace. Proponents argue that the change is a necessary step for clearer insurance regulation, minimizing issues that arise when multiple insurance policies are deemed applicable to a single claim. Critics may express concerns about how this could limit consumer choice, particularly for those who prefer to utilize their health insurance for coverage. They fear that the legislation may lead to increased costs for car insurance policies, as it removes the flexibility insurers previously had in their coverage options available to insured individuals. Further, the bill's immediate effective date upon passage implies that companies will need to be ready for rapid compliance with the new regulations. The legislation thus carries implications for existing policyholders who might need to adjust their coverage choices in line with the new requirements. Overall, A4271 not only impacts current insurance practices but also sets a precedence for reforming how insurance coverages interact in New Jersey, reflecting a broader movement towards legislative clarity in insurance matters.