New Jersey 2024-2025 Regular Session

New Jersey Senate Bill S2277

Introduced
1/9/24  

Caption

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.

Companion Bills

NJ S2255

Carry Over Provides that automobile insurers may act as primary insurer and pursue claims against health insurers under certain circumstances.

Similar Bills

NJ A1742

"Peer-to-Peer Car Sharing Act".

NJ S959

Authorizes purchaser of automobile by private sale to operate automobile for three-day period following purchase without permanent registration or transfer of title.

NJ A420

Authorizes purchaser of automobile by private sale to operate automobile for three-day period following purchase without permanent registration or transfer of title.

NJ A3181

Authorizes purchaser of automobile by private sale to operate automobile for three-day period following purchase without permanent registration or transfer of title.

NJ S917

Authorizes purchaser of automobile by private sale to operate automobile for three-day period following purchase without permanent registration or transfer of title.

NJ A2012

Establishes "Automobile Accident Injury Fund."

NJ S3221

Establishes "Automobile Accident Injury Fund."

NJ A4788

Establishes "Automobile Accident Injury Fund."