This bill amends the existing regulations governing territorial rating plans for private passenger automobile insurance in New Jersey. It mandates that the Commissioner of Banking and Insurance establish new rating territories defined by contiguous zip code+4 areas, closely following municipal boundaries. The bill also stipulates that the maximum number of territories allowed in any territorial map shall not exceed 100, an increase from the current limit of 50 territories defined by contiguous zip code. This change aims to provide insurers with a more detailed and granular approach to assessing risk associated with automobile insurance.

Additionally, the bill outlines specific criteria for the establishment of these new territorial rating plans, including the need for territories to reflect qualitative similarities and differences in driving environments, ensure a sufficient number of exposures for statistical credibility, and avoid arbitrary or discriminatory practices. The bill also emphasizes the importance of equitable distribution of exposures among territories and prohibits significant disparities in territorial relativity factors between contiguous areas. Overall, these revisions are intended to enhance the fairness and accuracy of automobile insurance rating in New Jersey.

Statutes affected:
Introduced: 17:29A-48