A3879

New Jersey A3879 revises territorial rating plans for private passenger automobile insurance.

New Jersey A3879 revises territorial rating plans used by insurers writing private passenger automobile insurance. The bill mandates the Commissioner of Banking and Insurance to establish new rating territories defined by contiguous zip code+4, following municipal boundaries as closely as possible. The maximum number of territories is set at 100. The bill also requires the consideration of various factors, including traffic density, population density, and the severity of loss, to ensure equitable distribution of exposures and avoid unfair inter-territorial subsidization.