The National Association of Independent Insurers issued a bulletin noting that New Jersey’s Department of Insurance is moving quickly to put in place more than 20 regulations necessary to implement the milestone auto insurance regulatory reform enacted earlier this year.
“It’s important not only that the legislation was enacted, but that the Department establish the regulations needed to carry out the new law,” stated Donald S. Cleasby, NAII assistant vice president and assistant general counsel.” The DOI’s responsiveness to this aspect is in large part responsible for the gains we’ve already seen.”
The bulletin cited the following promulgated regulations, which became effective December 15:
– A regulation allowing insurers to cancel a policy for anyone who knowingly provides false information on an auto insurance application, renewal or claim.
–A regulation concerning information required by insurers for renewal notices, changes to the advance notice for nonrenewal notices, underwriting rule requirements for renewal premium and late fees for renewal premium received after the due date.
–A regulation establishing general requirements, eligibility requirements, coverage and election standards for the “dollar-a-day” special automobile insurance policies for Medicare recipients to bring them in compliance with New Jersey’s mandatory insurance requirements.
It also noted the following amendments:
–Amendments to existing regulations dealing with rate filing requirements and excess profits calculation, replacing the current standard with a formula based on return on equity, capped at a maximum of 12 percent.
–Amendments to an existing regulation on rate filings reflecting changes in new law to the “expedited rate filing process” for increases of under a specified percent.