Bill Text: NJ S111 | 2020-2021 | Regular Session | Amended


Bill Title: Prohibits use of education, occupation, homeownership status, marital status, or credit score in certain automobile insurance determinations.*

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Engrossed) 2021-01-29 - Received in the Assembly, Referred to Assembly Financial Institutions and Insurance Committee [S111 Detail]

Download: New_Jersey-2020-S111-Amended.html

[First Reprint]

SENATE, No. 111

STATE OF NEW JERSEY

219th LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2020 SESSION

 


 

Sponsored by:

Senator  NIA H. GILL

District 34 (Essex and Passaic)

Senator  M. TERESA RUIZ

District 29 (Essex)

Senator  NILSA CRUZ-PEREZ

District 5 (Camden and Gloucester)

Senator  NELLIE POU

District 35 (Bergen and Passaic)

 

Co-Sponsored by:

Senators Turner and Gopal

 

 

 

 

SYNOPSIS

     Prohibits use of education, occupation, homeownership status, marital status, or credit score in certain automobile insurance determinations.

 

CURRENT VERSION OF TEXT

     As amended by the Senate on January 11, 2021.

  


An Act concerning certain automobile insurance underwriting rules and amending P.L.1997, c.151.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

      1.   Section 15 of P.L.1997, c.151 (C.17:29A-46.2) is amended to read as follows:

     15.  a.   Insurers shall put in writing all underwriting rules applicable to each rate level utilized pursuant to section 14 of P.L.1997, c.151 (C.17:29A-46.1).  An insurer may take into account factors, including, but not limited to, driving record characteristics appropriate for underwriting and classification in formulating its underwriting rules; provided that no underwriting rule based on motor vehicle violations shall be formulated in such a manner as to assign any named insured to a rating tier other than the standard rating tier applicable to the insured's territory solely on the basis of accumulating four motor vehicle points or less.  No underwriting rule shall operate in such a manner as to assign a risk to a rating plan on the basis of the territory in which the insured resides or any other factor which the commissioner finds is a surrogate for territory.  No underwriting rule shall operate in such a manner as to assign a risk to a rating plan on the basis of an insured's: (1) educational level; (2) employment, trade, business, occupation or profession; 1[or]1 (3) 1employment status; (4) homeownership status; (5) marital status; or (6)1 credit score, or any information derived from an insured's credit report.  1An insurer shall not take any of these factors into consideration in determining a consumer's eligibility for insurance or in calculating a rate for an insured, or in any insurance score used to calculate an insured's rate.1  An insurer which knowingly fails to transact automobile insurance consistently with its underwriting rules shall be subject to a fine of not less than $1,000 for each violation.

     b.    All underwriting rules applicable to each rate level as provided for in section 14 of P.L.1997, c.151 (C.17:29A-46.1) shall be filed with the commissioner and shall be subject to his prior approval. All underwriting rules shall be subject to public inspection. Except as provided in subsection d. of section 27 of P.L.1990, c.8 (C.17:33B-15), insurers shall apply their underwriting rules uniformly and without exception throughout the State, so that every applicant or insured conforming with the underwriting rules will be insured or renewed, and so that every applicant not conforming with the underwriting rules will be refused insurance.

     c.     An insurer with more than one rating plan for private passenger automobile insurance policies providing identical

coverages shall not adopt underwriting rules which would permit a person to be insured for private passenger automobile insurance under more than one of the rating plans.

     d.    An insurer that revises its underwriting rules with respect to the assignment of insureds to rating tiers based on the number of accumulated motor vehicle points, as provided by subsection a. of this section, as amended by P.L.2003, c.89, shall certify to the commissioner that the revised rule will produce rates that are revenue neutral based upon the insurer's current coverages and book of business.

(cf: P.L.2003, c.89, s.40)

 

     2.    This act shall take effect on the 90th day following enactment.

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