This bill amends existing motor vehicle liability insurance laws in New Jersey to ensure that insurance policies do not restrict the full payment of recovery amounts for insured individuals. Specifically, it prohibits any motor vehicle liability policy from limiting the recovery amount for a person insured under the policy—regardless of whether they are a named insured or a permissive user—to less than the maximum recovery limits specified in the policy for various coverages, including bodily injury liability, property damage liability, uninsured and underinsured motorist coverage, and medical payments coverage. Additionally, if a policy covers multiple private passenger vehicles, the recovery limits available to a permissive user will correspond to the vehicle they were using at the time of the incident.

The bill also introduces definitions for "permissive user," clarifying that it refers to individuals granted permission by the vehicle owner to operate the vehicle temporarily, even if they are not named on the insurance policy. The changes are set to take effect 90 days after the bill's enactment and will apply to automobile insurance policies initiated or renewed after that date.