Bill Text: NJ S2422 | 2020-2021 | Regular Session | Introduced


Bill Title: Requires automobile insurers to issue credits reflecting reduced driving due to "stay at home" order during COVID-19 pandemic and reduce rates in consideration of financial hardships related thereto.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2020-05-07 - Introduced in the Senate, Referred to Senate Commerce Committee [S2422 Detail]

Download: New_Jersey-2020-S2422-Introduced.html

SENATE, No. 2422

STATE OF NEW JERSEY

219th LEGISLATURE

 

INTRODUCED MAY 7, 2020

 


 

Sponsored by:

Senator  RONALD L. RICE

District 28 (Essex)

 

 

 

 

SYNOPSIS

     Requires automobile insurers to issue credits reflecting reduced driving due to "stay-at-home" order during COVID-19 pandemic and reduce rates in consideration of financial hardships related thereto.

 

CURRENT VERSION OF TEXT

     As introduced.

 


An Act concerning certain credits and rate reductions for private passenger automobile insurance related to the coronavirus disease 2019 pandemic.

 

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

 

     1.    a.   Every insurer writing private passenger automobile insurance in this State shall issue to each insured with a policy in effect on March 21, 2020 a credit as provided in subsection b. of this section which reflects the actuarial value of the insurer's reduced risk exposure resulting from the reduced driving experience and changing driving habits of New Jersey insureds during the Public Health Emergency and State of Emergency declared by the Governor in Executive Order 103 of 2020, and specifically the "stay-at-home" provisions of Executive Order 107 of 2020, which took effect on that date.

     b.    The credit required by subsection a. of this section shall be calculated retroactively to policies in effect on March 21. 2020.  The credit may be returned to the policyholder in the form of a direct refund, or credit toward future premiums, and shall apply to both fully paid and monthly billed policies.  Policyholders shall not be required take any action to receive the refund or credit.  The refund or credit shall be applied for the period beginning on March 21, 2020 and ending 90 days after the stay-at-home provisions of Executive Order 107 of 2020 have been rescinded.

 

     2.    In addition to the credit required pursuant to section 1 of this act, and after consultation with the Commissioner of Banking and Insurance, every insurer writing private passenger automobile insurance in this State shall file with the commissioner a supplementary rate filing which reflects a reduction in rates for the period beginning on March 21, 2020 and ending 90 days after the stay-at-home provisions of Executive Order 107 of 2020 have been rescinded, in consideration of the financial hardships that many policyholders are experiencing, and will continue to experience for an extended period of time, as a result of the coronavirus disease 2019 pandemic.

 

     3.    This act shall take effect immediately and shall be retroactive to March 21, 2020.

 

 

STATEMENT

 

     This bill provides that every insurer writing private passenger automobile insurance in this State shall issue a refund or credit to each insured with a policy in effect on March 21, 2020 which reflects the insurer's reduced risk exposure resulting from the reduced driving experience and changing driving habits of New Jersey's drivers during the Public Health Emergency and State of Emergency declared by the Governor in Executive Order 103 of 2020, and specifically the "stay-at-home" provisions of Executive Order 107 of 2020, which took effect on that date.

     The credit shall be calculated retroactively to policies in effect on March 21. 2020 and may be returned to the policyholder in the form of a direct refund, or credit toward future premiums, and shall apply to both fully paid and monthly billed policies.  Policyholders shall not be required take any action to receive the refund or credit.  The refund or credit shall be applied for the period beginning on March 21, 2020 and ending 90 days after the stay-at-home provisions of Executive Order 107 of 2020 have been rescinded.

     Additionally, the bill requires automobile insurers to consult with the Commissioner of Banking and Insurance and file a supplementary rate filing which reflects a reduction in rates for the period beginning on March 21, 2020 and ending 90 days after the stay-at-home provisions of Executive Order 107 of 2020 have been rescinded, in consideration of the financial hardships that many policyholders are experiencing, and will continue to experience for an extended period of time, as a result of the coronavirus disease 2019 pandemic.

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