News and publications
Dec 13, 2017
PIANJ sets priorities for upcoming legislative session
PIANJ is gearing up for the upcoming legislative session. Through a recent member survey and in committee and board discussions, PIANJ has identified the legislative priorities on which its members want their association to focus for the upcoming year.
The top priorities include:
- Producer duty of care. New Jersey’s standard of care has been developed by more than 50 years of case law. Unfortunately, this has created some ambiguity in the standard. PIANJ will support legislation to clarify and standardize the level of care a producer is expected to exercise.
- Accurate quoting of automobile policies. This issue originated from the perceived practice of carriers re-rating policies as a result of running the individuals’ motor vehicle reports after quoting or binding coverage. So, when an applicant agrees to the terms and price of a policy, he or she is not aware that the policy could be re-rated and often the premium is increased substantially. Colloquially, this issue is known as "bait-and-switch." This practice is damaging to professional independent producers. PIANJ is committed to addressing this issue to ensure a level playing field for producers.
- Personal auto 'step-down’ provisions. Recently, carriers have begun placing step-down provisions in personal automobile policies. A step-down provision in an automobile policy states that the limits applicable to an insured will not be what the policy declarations reflect or what the insured had chosen, rather, they reflect the limits of the financial responsibility law of the state in which an accident occurs. PIANJ already has taken steps to help producers combat this practice by creating a sample personal auto step-down provision letter that insurance producers can send to their clients. In addition, PIANJ plans to address this issue legislatively during the upcoming 2018-19 session.
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