On August 5, 2022, P.L. 2022, c.87 (the Act) was signed into law and amended existing law to increase the minimum limits of liability, uninsured motorist and underinsured motorist insurance coverage that must be provided in automobile insurance policies issued in New Jersey. The Department of Banking and Insurance (the Department) has issued a Bulletin #22-09 linked here to advise automobile insurers of their obligations pursuant to the Act.
The Act increases minimum limits of insurance coverage for losses resulting from liability imposed by law for bodily injury, death and property damage arising out of the ownership, maintenance, operation, or use of an automobile, as defined in N.J.S.A. 39:6A-2, or any motor vehicle. P.L. 2022, c.87, s.2, 3. The Act also increases minimum coverage limits for damages sustained by an insured, resulting from bodily injury, death and property damage arising out of the ownership, maintenance, operation, or use of an uninsured, underinsured, or hit and run motor vehicle. P.L. 2022, c.87, s.1.
For losses on account of injury to, or death of, one person, in any one accident (“Per Person Coverage”), the minimum coverage limit shall be increased to $25,000 for policies issued or renewed on or after January 1, 2023, but prior to January 1, 2026; and $35,000 for policies issued or renewed on or after January 1, 2026. N.J.S.A. 17:28-1.1(a)(1), 39:6A-3(a), 6B-1(a)(1).
For losses on account of injury to, or death of, more than one person, in any one accident (“Per Accident Coverage”), the minimum coverage limit shall be increased to $50,000 for policies issued or renewed on or after January 1, 2023, but prior to January 1, 2026; and $70,000 for policies issued or renewed on or after January 1, 2026. N.J.S.A. 17:28-1.1(a)(2), 39:6A-3(b), 6B-1(a)(2).
The Act does not apply to the basic automobile insurance policy provided by N.J.S.A. 39:6A3.1. See, P.L.2022, c.87, s.1, 2, 3.
The Bulletin makes clear that all insurers issuing automobile policies must have rates and forms which reflect the new minimum limits. While the updated Buyer’s Guide for both personal lines and commercial lines, respectively, do not require filing and approval, they must nonetheless be updated. To the extent that carriers do not have compliant rates on file, the Department is requiring filing and approval of same by January 30, 2023.