New Jersey Senate Bill S3717

New Jersey 2024-2025 Regular Session

• Introduced: 10/7/24
• Refer: 10/7/24

Caption

Prohibits automobile insurers from using underwriting rules to raise automobile insurance rates on persons deemed not at fault in motor vehicle accidents.

Impact

If enacted, S3717 will have significant ramifications on the state's insurance laws by prohibiting insurers from using any underwriting rules that would raise rates based solely on a policyholder's involvement in accidents deemed not at fault. Under this bill, insurers will be required to draft their underwriting criteria transparently and obtain prior approval from the state's insurance commissioner. This statutory change is expected to create a more equitable insurance landscape in New Jersey, providing reassurance to policyholders that their rates will not be adversely affected by accidents outside their control.

Summary

Senate Bill S3717, introduced in New Jersey, aims to protect individuals involved in motor vehicle accidents where they are determined to be not at fault from having their automobile insurance rates increased due to such incidents. The bill proposes an amendment to the existing insurance regulations set forth in P.L.1997, c.151, specifically addressing how underwriting rules are applied by automobile insurers. This legislation is set against the backdrop of rising insurance costs and aims to ensure fair treatment for drivers who are not responsible for accidents, preventing them from being penalized through increased premiums.

Contention

While the bill addresses a pressing issue regarding insurance fairness, it may face opposition from insurance companies concerned about the potential financial implications of being unable to adjust rates based on claims history. Opponents could argue that such regulations might lead to higher premiums for responsible drivers who have a clean driving record, as the costs incurred by claims from at-fault individuals cannot be effectively balanced through underwriting practices. The bill’s supporters, on the other hand, argue that it could reduce the financial burden on drivers who are already facing significant costs associated with living in a higher-risk driving environment.