SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE, No. 1473

with committee amendments

STATE OF NEW JERSEY

DATED:  FEBRUARY 10, 2025

      The Senate Commerce Committee reports favorably and with committee amendments Senate Bill No. 1473.

      As amended, this bill revises the personal injury protection coverage for basic automobile insurance policies from $15,000 to $20,000 and requires a minimum personal injury protection coverage of $50,000 for standard automobile liability insurance policies.  Under the bill, every basic automobile insurance policy will be required to provide personal injury protection coverage in an amount not to exceed $20,000 per person per accident, and every standard automobile liability insurance policy will be required to provide personal injury protection coverage that shall be no less than $50,000 per person per accident.  Current law requires basic automobile insurance policies to provide personal injury protection coverage in an amount not to exceed $15,000 per person per accident, with no minimums required for standard automobile liability insurance policies.  Additionally, the bill requires insurers to inform a named insured that policy limits for the insured’s standard automobile liability insurance policy or basic automobile insurance policy have increased during the renewal period of the policy but exempts insurers from needing a signed coverage selection form before increasing these limits.

      This bill was pre-filed for introduction in the 2024-2025 session pending technical review.  As reported, the bill includes the changes required by technical review, which has been performed.

COMMITTEE AMENDMENTS:

      The committee has amended the bill to:

      (1)  revise personal injury protection coverages for basic automobile insurance policies from $50,000 to $20,000;

      (2)  require insurers to inform a named insured that policy limits have increased when the named insured has renewed a policy of insurance and exempt insurers from receiving a signed coverage selection form before increasing a policy’s limits;

      (3)  update current law reviewing personal injury protection options for standard automobile liability insurance policies;

      (4)  revise the effective date to require that the revised personal injury protection coverages for basic automobile insurance policies be implemented on the first day of the 18th month after the date of enactment of this bill; and

      (5)  make certain technical changes.