New Jersey Senate Bill S2268

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Requires consultation with insurance producer or provision of cost benefit analysis prior to sale of automobile insurance policy.

Impact

The introduction of S2268 is designed to modify how automobile insurance is sold in New Jersey by mandating greater engagement with insurance professionals. This change is anticipated to affect insurance providers, requiring them to implement systems for consultations and analyses. The Department of Banking and Insurance is tasked with establishing the regulations surrounding what constitutes a valid consultation and the parameters of the cost benefit analysis, ensuring compliance with the new guidelines.

Summary

Senate Bill S2268 requires that individuals consult with a licensed insurance producer before purchasing a motor vehicle liability insurance policy. This bill is intended to ensure that consumers make informed decisions regarding their insurance coverage. By mandating a consultation process, the bill aims to enhance understanding of insurance options and obligations, thus potentially reducing the number of uninformed purchases. Furthermore, the bill allows insurers to sell policies through online platforms provided that they offer a cost benefit analysis prior to the sale, balancing consumer accessibility with informed choices.

Contention

While proponents view this legislation as a necessary step towards consumer protection, there may be concerns regarding its implications for online sales and the additional burden it places on insurance providers. Critics might argue that requiring a consultation could complicate the purchasing process and deter consumers from choosing necessary insurance. The bill aims to strike a balance between protecting consumers and maintaining accessibility in the insurance market, which may lead to debates on efficiency versus consumer safeguards.