This bill amends existing motor vehicle liability insurance laws in New Jersey to prohibit insurance policies from restricting the amount that can be recovered under the policy. Specifically, it ensures that all individuals covered under the policy—such as permissive users, named insureds, listed drivers, resident relatives, or passengers—are entitled to the maximum recovery limits for bodily injury liability, property damage liability, and uninsured or underinsured motorist coverage as specified in the policy. The new legal language inserted into the law clarifies that these coverage limits must be uniformly applied to all insured individuals, regardless of their status under the policy.

Additionally, the bill mandates that a motor vehicle liability policy issued to a corporate or business entity must provide at least the same level of uninsured or underinsured motorist coverage for employees as it does for the named insured. This change aims to enhance protection for individuals who may be driving vehicles owned by their employers. The bill will take effect 90 days after enactment and will apply to automobile insurance policies initiated or renewed on or after that date.

Statutes affected:
Introduced: 17:28-1.1