New Jersey Assembly Bill A3665

New Jersey 2026-2027 Regular Session

• Introduced: 1/13/26
• Refer: 1/13/26

Caption

Prohibits use of gap in automobile insurance coverage as rating factor in automobile insurance underwriting under certain circumstances.

Impact

The enactment of A3665 could significantly alter current insurance practices in the state by mandating that underwriting rules must not consider an applicant's prior lapse in coverage. This would lead to changes in how insurers evaluate risk and assign premiums, potentially benefiting consumers who find it challenging to secure affordable insurance after experiencing a lapse. Additionally, the bill aligns with broader consumer protection efforts aimed at ensuring that individuals are not penalized for past financial hardships related to their insurance coverage.

Summary

Assembly Bill A3665, introduced in the New Jersey Legislature, aims to address automobile insurance rating plans by prohibiting insurers from using gaps in insurance coverage as a factor in underwriting decisions under certain circumstances. Specifically, the bill amends existing legislation to ensure that if an individual had a previous automobile insurance policy but experienced a lapse in coverage, this should not adversely impact their insurance rating in future applications. This proposal seeks to provide consumers with fairer treatment in the insurance market, particularly those who may have had temporary lapses for legitimate reasons.

Contention

Discussions around A3665 may reveal points of contention among stakeholders in the insurance market. Insurers might express concern that prohibiting the consideration of coverage lapses could lead to higher overall risk within their insured populations, prompting them to adjust rates for all customers to compensate. Conversely, consumer advocacy groups may support the bill, arguing that it promotes responsible behavior and fair access to insurance products for consumers. The balance between protecting insurers' financial interests and ensuring accessibility for all consumers is likely to be a key aspect of legislative debates.