This bill amends the existing regulations governing territorial rating plans for private passenger automobile insurance in New Jersey. It mandates that insurers and rating organizations establish new territorial rating plans that include specific definitions, relativity factors, and base rates. The Commissioner of Banking and Insurance is tasked with creating regulations that ensure these new territories reflect qualitative similarities and differences in driving environments, such as traffic density and population density. The bill emphasizes the need for territories to be statistically credible and equitably distributed, while also preventing arbitrary or discriminatory practices in the establishment of these territories.

A significant change introduced by this bill is the requirement for territories to be defined by contiguous zip code+4, rather than just contiguous zip codes, and it raises the maximum number of territories allowed in any territorial map from 50 to 100. This change aims to provide insurers with a more detailed and precise method for assessing risk associated with automobile insurance. The bill is set to take effect 120 days after enactment and will apply to territorial rating plans filed after that date.

Statutes affected:
Introduced: 17:29A-48