This bill amends existing law to prohibit automobile insurers from using underwriting rules that would result in increased insurance rates for individuals deemed not at fault in accidents involving municipal vehicles. Specifically, it inserts a provision stating that no underwriting rule shall assign a risk to a rating plan based on a named insured's involvement in such an accident, provided that the insured is a private individual deemed not at fault by their insurer and the at-fault party is a municipality protected by immunity under New Jersey law.

Additionally, the bill establishes penalties for insurers that fail to comply with these underwriting rules, imposing a fine of no less than $1,000 for each violation. The act is set to take effect 90 days after enactment and will apply to all automobile insurance policies issued, executed, delivered, or renewed after that date.

Statutes affected:
Introduced: 17:29A-46.2