ASSEMBLY FINANCIAL INSTITUTIONS AND INSURANCE COMMITTEE

STATEMENT TO

ASSEMBLY, No. 4562

with committee amendments

STATE OF NEW JERSEY

DATED:  JUNE 4, 2026

      The Assembly Financial Institutions and Insurance Committee reports favorably and with committee amendments Assembly Bill No. 4562.

      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. 

COMMITTEE AMENDMENTS:

      The committee amended the bill to extend the bill’s effective date to one year after the date of enactment.