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, closely aligning with municipal boundaries. The bill also stipulates that the maximum number of territories 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 in automobile insurance.

Additionally, the bill outlines specific criteria for defining these territories, including the need to recognize qualitative similarities and differences in driving environments, ensure a sufficient number of exposures for statistical credibility, and prevent arbitrary or discriminatory practices in territory creation. 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