New Jersey Bill A4292
New Jersey Bill A4292 was passed January 16, 2024.
Note: You can read more about New Jersey Bill A4292 here: https://pub.njleg.gov/Bills/2022/A4500/4292_I1.HTM
The bill increases commercial motor vehicle liability minimums based on the weight of the vehicle. When current policies expire, the bill requires insurers to notify their insured parties of policies that don’t meet the new requirements, and what those policy limits will be increased to.
The bill will take effect "on the first day of the sixth month next following the date of enactment", which is July 1, 2024.
Bill A4292/S2841: Amends commercial motor vehicle minimum liability coverage requirements as follows:
For commercial vehicles between 10,001 and 26,000 pounds, minimum liability coverage has been set at $300,000, exclusive of interest and costs, on account of injury to or death of, one or more persons in any one accident or for damage to property in any one accident.
For all other commercial vehicles, those at or over 26,001 pounds, minimum liability coverage has been set at $1,500,000, exclusive of interest and costs, on account of injury to or death of, one or more persons in any one accident or for damage to property in any one accident.
These new liability increases may be satisfied by a: commercial auto insurance policy, fleet insurance policy, commercial umbrella insurance policy, commercial excess insurance policy, similar insurance policy, or any combination thereof.
Insurers, upon the renewal of a policy that does not meet the new requirements, shall notify the named insured that the policy limits have been increased to meet the requirements established by A4292/S2841. Notice provided shall specify the limit or limits that have been increased to meet the requirements established pursuant to A4292/S2841. Insurers do not need to receive a signed coverage selection form to increase a policy's limits pursuant to A4292/S2841.
In Summary: Effective July 1, 2024, commercial vehicles between 10,001 and 26,000 pounds now need a minimum liability coverage of $300,000, and those over 26,000 pounds now need a minimum liability coverage of $1,500,000. Insurers will notify insured parties of policies that don’t meet the new required liability minimums and also notify insured parties of what those policy limits will be increased to.
To learn more about Bill A4292, you can reach out to the New Jersey Legislative Services Office at leginfo@njleg.org or 800-792-8630.
What Does This Mean For Me?
Pursuant to New Jersey law, effective July 1, Highway started automatically enforcing a new rule within Classifications monitoring BIPD insurance limits to require minimum BIPD coverage of $1,500,000 if the carrier has a physical address in New Jersey and the BIPD policy has an effective date of July 1, 2024 or later. Please reach out to your dedicated Highway representative if you do not want this rule enforced in your organization.