An Act concerning certain automobile insurance underwriting rules, supplementing P.L.1972, c.70 (C.39:6A-1 et seq.) and amending P.L. 1997, c.151.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. (New section) The Legislature finds and declares that:

a. The individuals who are employed by government entities to clear and maintain public streets and highways within the State of New Jersey during inclement weather conditions provide a valuable service to the residents of this State;

b. These individuals who are employed by government entities to drive snow ploughs, salt trucks and other vehicles that are used specifically during such hazardous weather conditions make it possible for citizens of this State to get to and from work, school and many other daily activities by ensuring the roads and highways are clear of snow, ice and any other debris;

c. These individuals put their lives on the line each time they engage in the requirements of their employment; and yet, despite their efforts and commitment to protecting the safety and welfare of the general public, these individuals may be penalized by automobile insurance companies if, while clearing the streets and highways during bad weather, they are involved in an automobile accident;

d. When calculating the personal automobile insurance premium for these individuals, automobile insurance companies are capable of factoring into that calculation any accident that the individual was involved in, regardless of whether such accident occurred during the course of the individual's employment or while the individual was driving during non-work hours;

e. As a result, many of these individuals may experience an increase in their personal automobile insurance premium due to their involvement in an automobile accident that occurred during the course of their employment;

f. This increase in that individual's personal automobile insurance premium is unjust, especially since that individual would not have been on the road, much less involved in an automobile accident, but for the fact that that individual was required to be out on the road for the purpose of making public roads and highways safe for travel by the general public during hazardous weather conditions;

g. To that end, it is fitting and appropriate for the State to take steps to ensure that the individuals who are hired by the State and political subdivisions thereof are protected against such unjust increases in their personal automobile insurance premiums as a result of their involvement in an automobile accident that occurs during the course of their employment, in which they are engaged in activities that include clearing and maintaining public streets and highways during inclement weather conditions.

2. (New section) As used in this act:

"Government-issued vehicle" means a vehicle that is leased or owned by the State or a political subdivision thereof that is used for the limited purpose of clearing and maintaining any public street or highway in the State for the safety and welfare of the general public during hazardous weather conditions.

"Hazardous weather conditions" means: (1) deep snow with capability for prolonged blocking of traffic; (2) intense icing conditions on any public street or highway in the State; (3) treacherous winds or continuing high velocity gusts; (4) floods; or (5) tornado warnings or extensive post-tornado damage.

3. (New section) No insurer shall require as to any application or selection of coverage for an automobile insurance policy issued or renewed in this State, any information from an insured or applicant as to the insured's or applicant's involvement in an automobile accident, in which the insured or applicant is driving a government-issued vehicle during the course of the insured's or applicant's employment on behalf of a government entity during hazardous weather conditions.

4. Section 15 of P.L.1997, c.151 (C.17:29A-46.2) is amended to read as follows:

15. a. Insurers shall put in writing all underwriting rules applicable to each rate level utilized pursuant to section 14 of P.L.1997, c.151 (C.17:29A-46.1). An insurer may take into account factors, including, but not limited to, driving record characteristics appropriate for underwriting and classification in formulating its underwriting rules; provided that no underwriting rule based on motor vehicle violations shall be formulated in such a manner as to assign any named insured to a rating tier other than the standard rating tier applicable to the insured's territory solely on the basis of accumulating four motor vehicle points or less. No underwriting rule shall operate in such a manner as to assign a risk to a rating plan on the basis of the territory in which the insured resides or any other factor which the commissioner finds is a surrogate for territory. No underwriting rule shall operate in such a manner as to assign a risk to a rating plan on the basis of an insured's involvement in an automobile accident, in which the insured is an employee of the State or any political subdivision thereof and who, in his official capacity, is driving a government-issued vehicle during hazardous weather conditions, as these terms are defined by section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill). An insurer which knowingly fails to transact automobile insurance consistently with its underwriting rules shall be subject to a fine of not less than $1,000 for each violation.

b. All underwriting rules applicable to each rate level as provided for in section 14 of P.L.1997, c.151 (C.17:29A-46.1) shall be filed with the commissioner and shall be subject to his prior approval. All underwriting rules shall be subject to public inspection. Except as provided in subsection d. of section 27 of P.L.1990, c.8 (C.17:33B-15), insurers shall apply their underwriting rules uniformly and without exception throughout the State, so that every applicant or insured conforming with the underwriting rules will be insured or renewed, and so that every applicant not conforming with the underwriting rules will be refused insurance.

c. An insurer with more than one rating plan for private passenger automobile insurance policies providing identical coverages shall not adopt underwriting rules which would permit a person to be insured for private passenger automobile insurance under more than one of the rating plans.

d. An insurer that revises its underwriting rules with respect to the assignment of insureds to rating tiers based on the number of accumulated motor vehicle points, as provided by subsection a. of this section, as amended by P.L.2003, c.89, shall certify to the commissioner that the revised rule will produce rates that are revenue neutral based upon the insurer's current coverages and book of business.

(cf: P.L.2003, c.89, s.40)

5. This act shall take effect on the 90^th day following enactment.

STATEMENT

This bill prohibits automobile insurers from assigning an insured to a rating tier based upon an insured's involvement in an automobile accident in which the insured is an employee of the State of New Jersey or any political subdivision thereof who, in his official capacity, is driving a government-issued vehicle for the limited purpose of clearing and maintaining any public street or highway in the State for the safety and welfare of the general public during hazardous weather conditions. The bill also prohibits automobile insurers from requiring, as to any application or selection of coverage, any information from an insured or applicant as to these factors.

Currently, insureds who are employed by the State or a political subdivision thereof to clear public streets and highways during hazardous weather conditions may be subject to increases in their personal automobile insurance premium if, while during the course of their employment, they are involved in an automobile accident. These individuals would not be on public streets and highways during such weather conditions if they were not required to do so; and yet, despite their efforts to make the roadways safe for the general public to travel, these individuals may be subject to incur increases in their personal automobile insurance premium if, while clearing the street or highway of snow, ice or any other debris during inclement weather conditions, they are involved in an automobile accident. The purpose of this bill is to ensure that these individuals are not penalized for their involvement in such accidents during the course of their employment.

As used in this bill, "government-issued vehicle" means a vehicle that is leased or owned by the State or a political subdivision thereof that is used for the limited purpose of clearing and maintaining any public street or highway in the State for the safety and welfare of the general public during hazardous weather conditions. Also, as defined in this bill, "hazardous weather conditions" means: (1) deep snow with capability for prolonged blocking of traffic; (2) intense icing conditions on any public street or highway in the State; (3) treacherous winds or continuing high velocity gusts; (4) floods; or (5) tornado warnings or extensive post-tornado damage.