This bill amends existing motor vehicle liability insurance laws in New Jersey to ensure that insurance policies do not limit the recovery amounts for covered individuals. Specifically, it prohibits policies from restricting the recovery for a named insured, listed driver, or resident relative in the household to less than the maximum recovery limits for bodily injury liability, property damage liability, and uninsured and underinsured motorist coverage. If a policy covers multiple vehicles, the recovery limits will correspond to the vehicle being used at the time of the incident.

Additionally, the bill mandates that any insurer imposing such restrictions must clearly disclose this information on the policy declaration page. The act will take effect 180 days after enactment and will apply to automobile insurance policies initiated or renewed after that date. This legislation aims to enhance the protection of insured individuals by ensuring they can fully recover amounts owed under their policies without arbitrary limitations.

Statutes affected:
Introduced: 17:28-1.1