This bill amends current motor vehicle liability insurance laws in New Jersey to prohibit policies from restricting the amount that can be recovered under the policy. Specifically, it ensures that all insured individuals—including permissive users, named insureds, listed drivers, resident relatives, and 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 a policy will be deemed to provide the maximum coverage available to any insured individual, regardless of their status under the policy.

Additionally, the bill establishes 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 covered under such policies, ensuring they are not disadvantaged compared to the corporate entity. 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