New Jersey Insurance Laws, Rules and Regulations
Regulation and licensing
The New Jersey Department of Banking and Insurance, headed by the Commissioner, licenses producers and insurers, reviews rates and forms, and investigates unfair practices. Producers must be appointed by an insurer, must complete continuing education (including ethics) each renewal cycle, and hold premiums in a fiduciary capacity - commingling with personal funds is prohibited. Rebating any part of a commission to induce a sale is illegal, as is misrepresentation and twisting.
Mandatory auto coverage
New Jersey requires liability of at least 15/30/5, PIP of at least $15,000, and uninsured motorist coverage equal to liability limits unless the buyer selects lower limits in writing. Buyers choose a PIP deductible, an optional medical co-payment plan, and either the limitation-on-lawsuit (verbal) or no-limitation (zero) threshold. Driving uninsured carries fines, license and registration suspension, and surcharge points. PIP is primary over health insurance unless the insured elects to make health coverage primary.
Residual markets and funds
The FAIR Plan provides basic property insurance where the voluntary market will not. The New Jersey Automobile Insurance Plan assigns hard-to-place drivers among insurers. The Unsatisfied Claim and Judgment Fund responds to claims from persons injured by uninsured or hit-and-run drivers, and the Special Automobile Insurance Policy offers limited, low-cost coverage tied to Medicaid eligibility.
Claim handling and cancellation
Insurers must acknowledge claims promptly, state the basis for any denial in writing, and pay promptly once settled. After a policy has been in force for 60 days, cancellation is generally limited to nonpayment of premium, license suspension, or material misrepresentation, and nonrenewal requires advance written notice.