Sponsored by:
Assemblywoman ROSAURA "ROSY" BAGOLIE
District 27 (Essex and Passaic)
SYNOPSIS
Requires automobile insurance carriers offer policies with 12-month term.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning automobile insurance carriers and supplementing P.L.1972, c.70 (C.39-6A-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. An automobile insurer that offers a standard or basic automobile insurance policy shall provide the option to purchase the policy with a 12-month term. This requirement shall not be construed to restrict the insurer's ability to offer insurance policies with shorter or longer terms.
2. This act shall take effect 120 days after the date of enactment.
STATEMENT
This bill requires automobile insurance carriers in this State to offer insurance policies with a 12-month term as option to insurance buyers. Automobile insurance policies with 12-month terms can benefit insureds because they allow insurance rates to be set for a longer period, provide renewal periods that are easier to remember, and may allow discounts factored into premium pricing to remain in effect for longer periods.
The new requirement does not affect an automobile insurance carrier’s ability to offer insurance policies with shorter or longer terms.