This bill amends the existing law regarding the establishment of private passenger automobile insurance rating territories in New Jersey. It specifies that insurance rating territories cannot assign exposure based on ZIP codes if those ZIP codes cross municipal boundaries. Instead, in such cases, the exposure must be placed in the territory corresponding to the municipality where the automobile is garaged. This change aims to ensure that insurance ratings are more accurately reflective of the actual driving environments and risks associated with specific municipalities rather than relying on potentially misleading ZIP code designations.

Additionally, the bill outlines that insurers and rating organizations must create new territorial rating plans that adhere to specific standards set by the Commissioner of Banking and Insurance. These standards include considerations for qualitative similarities and differences in driving environments, the need for statistically credible exposure numbers, and the equitable distribution of exposures among territories. The bill emphasizes the importance of creating fair and non-discriminatory rating territories that accurately reflect the risk of loss based on actual driving conditions and demographics.

Statutes affected:
Introduced: 17:29A-48