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NJ Sex offenders Registry NJOEM Avian Flu Update NJ Health Insurance NJ Health Insurance Quotes |
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NJ Sex offenders Registry NJOEM Avian Flu Update NJ Health Insurance NJ Health Insurance Quotes |
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Your collision and comprehensive deductibles. NJ Auto Insurance Consumers can save premium dollars by choosing higher deductibles or eliminating coverage for older cars that are already paid for.
Your auto-related health insurer option. NJ Insurance Consumers can save premium dollars by choosing their health care insurers as primary in the case of auto accident-related injuries. It is important to check with your health care insurer before choosing this option.
Your Personal Injury Protection deductible and limits. NJ Auto Insurance Standard policies usually carry a deductible of $250 and a PIP limit of $250,000. Consumers can save premium dollars by choosing a higher deductible of $500, $1,000, $2,000 or $2,500 AND/OR by choosing one of the new lower PIP limits of $15,000, $50,000, $75,000, $150,000.
Your lawsuit option. NJ Auto Insurance Consumers can save premium dollars by choosing the Limitation on Lawsuit option, which limits suits for pain and suffering except in cases of death or serious injury.
Your vehicle options. Generally, higher-priced cars and high-performance vehicles cost more to insure.
Your multiple car discount. Insuring two or more automobiles on one policy can reduce your premium.
Your youthful operator credits. Some insurers offer special "Good Student" discounts and discounts to those who successfully complete driver education programs.
Finally, remember your NJ Auto Insurance ABCs: check with your Agent, Broker or Company representative if you have questions about your coverage options.
NJ Auto Insurance Example 1-A
Driver: 18-year-old, youthful male, unmarried
NJ Auto Insurance Example 1-B
Driver: Use same criteria as 1-A, except one at-fault accident
Example 2-A
Driver: Married couple, both between ages of 30 and 49 with newly licensed 17-year-old daughter in household
NJ Auto Insurance Example 2-B
Driver: Use same criteria as 2-A, except husband has one at-fault accident
NJ Auto Insurance Example 3-A
Driver: Married couple, both between ages of 30 and 49
NJ Auto Insurance Example 3-B
Driver: Use same criteria as 3-A, except husband has a four-point moving violation and two
comprehensive claims over $750 each; wife has one at-fault accident
NJ Auto Insurance Example 3-C
Driver: Use same criteria as 3-A, except:
NJ Auto Insurance Example 4-A
Driver: Married couple, both between the ages of 65 and 69
NJ Auto Insurance Example 4-B
Driver: Use same criteria as 4-A, except one at-fault accident
NJ Auto Insurance Example 5-A
Driver: 26-year-old female, unmarried
NJ Auto Insurance Example 5-B
Driver: Use same criteria as 5-A, except one at-fault accident
Example 5-C
Driver: Use same criteria as 5-A except:
NJ Auto Insurance Example 6-A
Driver: 30-year-old male, single car policy
NJ Auto Insurance Example 6-B
Driver: Use same criteria as 6-A except:
NJ Auto Insurance Example 7
Driver: 30-year-old male, single car policy
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*Proof of residency may include utility bill, copy of lease, affidavit from homeowner, phone bill, mortgage coupon, recent bank statement or voter registration card.
**You are not required to personally supply copies of motor vehicle reports. However, this may expedite the process.
NJ AUTOMOBILE INSURANCE CONSUMER BILL OF RIGHTS
You have the right to purchase NJ Auto Insurance:
You can never be denied auto insurance based on your gender, race, or ethnicity. In most
circumstances, a company cannot refuse to sell you insurance based on where you live as long as
you are an “eligible”* person.
If you are denied auto insurance coverage, the agent or company must state a reason. Common
reasons include:
• You are not an “eligible” person due to the number of points on your record.
• The insurer is a “membership company” that only covers certain categories of drivers.
• The Department of Banking and Insurance has permitted the insurer to stop writing new
policies.
You have the right to cancel or change NJ Auto Insurance:
You can shop for cheaper auto insurance at any time – not just when your policy is up for
renewal. If you find a better price, you can cancel your old policy and seek a refund of your
unused premium. However, never cancel your old policy until a new one is in effect. A lapse in
coverage will result in higher rates in the future.
You have the right to change your coverages and policy limits at any time, even if you are not
near your renewal date. If you select lower policy limits or cancel nonmandatory coverages to
save money, you have a right to a refund of your unused premium within 60 days.
You have the right to NJ Auto Insurance choices:
Starting in mid-2004, agents, brokers and companies must give you three coverage choices,
called “Insurance Scenarios,” when applying for a new policy, or at any time upon your request
if you are already insured. You must be told how each choice may affect what you pay and what
your benefits would be in the event of an accident. You always have the right to ask about
additional options.
You have the right to a timely NJ Auto Insurance response:
You have the right to a timely response when seeking an appointment or application from an
agent, broker or company. Appointments should be scheduled so that you can obtain coverage
before your current policy expires. Please note that under current insurance regulations a
voluntary insurance company has five (5) business days from the date it receives a completed
application to either issue or deny coverage to the applicant. However, an application is not
considered complete until the company has obtained all pertinent information, including a copy
of the applicant’s driving record from the Motor Vehicle Commission and verification of any
previous coverage. Therefore, the overall application process can take up to two weeks. Make
sure you give yourself enough time to shop for coverage.
You have the right to the prompt and fair handling of NJ Auto Insurance claims:
You have the right to ask about any payments made to others by your company and charged to
your policy. If you file a claim, it should be handled promptly and fairly. If a claim is denied,
you must receive a written explanation for the denial.
You have the right to a notice of NJ Auto Insurance cancellation:
There are specific circumstances that allow an insurance company to cancel your policy during
the policy period. This is referred to as a “mid-term cancellation.” This may only occur when
fraud is discovered, when your driver’s license is suspended or when the policyholder fails to
make premium payments. A 15-day warning notice must be sent before the policy is canceled.
You have the right to NJ Auto Insurance appeals:
If your coverage is canceled, you can file an appeal with the New Jersey Department of Banking
and Insurance. Contact Consumer Protection Services, P.O. Box 329, Trenton, NJ 08625-0329,
or call (609) 292-5316 or 1-800-446-SHOP. The Department cannot guarantee that your policy
will be reinstated, so you should not delay shopping for alternate coverage.
If a carrier denies you coverage and does not state a reason, or if you believe you have been
treated unfairly, you can contact Consumer Protection Services.
You have the right to a notice of NJ Auto Insurance non-renewals:
Insurers can decline to renew coverage for several reasons. Most often, this occurs when a
driver’s record includes “at-fault accident” or motor vehicle violations and is no longer
considered an “eligible”* person in the voluntary market. Other reasons include:
• The Department has, for regulatory reasons, permitted the company to non-renew policies.
• The insurer is using the 2-for-1 or the 2 percent rule. The 2-for-1 rule allows the insurer to
non-renew one vehicle for every two new ones it writes in each territory. The 2 percent rule
allows the insurer to non-renew up to 2 percent of policies in a territory experiencing heavy
growth. Drivers subject to non-renewal do not have clean driving records or have a poor
payment history. Insurers must state that they have invoked these rules on the non-renewal
notice.
A written non-renewal notice must be sent at least 60 calendar days prior to the expiration date
of the existing policy.
Your NJ Auto Insurance obligations as a New Jersey driver:
New Jersey state law requires that any registered vehicle be covered by an insurance policy.
Failure to maintain coverage can lead to higher prices for new policies, placement in the
“assigned risk” pool, suspension or revocation of your driver’s license or registration and
additional fines and penalties.
Maintaining your auto insurance coverage requires that you:
• Always make payments for your policy on time or a lapse in coverage may result. A driver
who incurs a lapse will end up paying far more for coverage.
• Always provide any information your company seeks. Insurance companies have the right to
seek information about all licensed drivers in the household.
• If you receive a non-renewal notice, do not wait to shop for alternate coverage. Policies can
be prepared in advance to become effective on a date several days or weeks after the
application.
A driver who mails a renewal payment before the due date cannot lose coverage. However,
insurers can charge the driver a late fee if the payment is postmarked on time, but arrives after
the payment due date.
* A driver is considered an "eligible" person for NJ insurance in the voluntary or
"regular" market if he or she has fewer than seven insurance eligibility points on
his or her record. This means moving violation points added with insurance points.
Driver: Married couple, both between ages of 30 and 49 with 19-year-old daughter in
household
Reside in New Brunswick territory (May alternately use either territory of applicant
or territory of producer’s office where applicable)
Two vehicles on policy:
• Car #1: 2002 Pontiac Grand Prix SE 4-door sedan (financed) driven by husband to
work 10 or more miles; 20,000 annual miles
• Car #2: 1992 Chevrolet Lumina Std 4-door sedan (owned outright) driven by wife to
work less than three miles; 12,000 annual miles
No driver training, no good student, no defensive driving discount
No accidents within the past three years
No motor vehicle violations within the past three years
Continuous insurance with same company for 10 years
NJ Auto Insurance POLICY SELECTION
• No lawsuit threshold
• $250,000 Standard PIP; $250 deductible
• With a Category II anti-theft device discount, and active seatbelt and dual airbags
(front only) on Car #1
• Bodily Injury limits of $100,000/$300,000
• Property Damage Liability $25,000 (or combined single limit of $300,000)
• Uninsured Motorist Coverage with Bodily Injury limits of $100,000/$300,000 and
Property Damage Liability $25,000 (or combined single limit of $300,000)
• $500 deductibles for Comprehensive and Collision
*Available for use by Insurers and Agents Pursuant to N.J.A.C. 11:3-47
Department of Banking and Insurance Consumer Information Scenarios*
For purposes of completing the insurance scenarios, insurers and agents should assume
the following:
2
Cost Saving Options for NJ Auto Insurance
EXAMPLE: This example assumes a typical (for insurance rating purposes) policyholder
household that includes a husband and wife with a 19-year-old daughter. They own a late-model
vehicle that is financed and an older vehicle that is paid off. The policy provides commonly
selected coverages and includes commonly selected deductibles, like those most New Jersey
drivers choose. The policy also has the No Limitation on Lawsuit option.
The annual premium for a policy like this, based upon the policyholder household described
above, would be approximately $_____.
Based on the above, choosing the following coverage options would affect the premiums in the
approximate amounts indicated below:
A. The policyholders do not have many assets they need to
protect and wish to save money, but would like to retain the
right to sue. Instead of the commonly selected liability limits
of $100,000/$300,000 and $25,000, they choose a policy with
the following minimum limits: Bodily Injury Liability limits of
$15,000/$30,000; Property Damage Liability of $5,000 (or
combined single limit of $35,000) and Uninsured Motorist
Coverage in these amounts. Choosing these limits will result in
a reduction of about $______.
Total Approximate Premium: $_______
B. Choosing the coverage limits in A. and the Limited
Right to Sue option will result in a reduction of about $_____.
Total Approximate Premium: $_______
NJ Auto Insurance Scenario 1:
Alternate Bodily Injury
Liability Coverage.
(The premium for the
Bodily Injury portion of
the policy in the
example above is
about $_______).
3
A. The policyholders have health insurance through work
and stable employment. Choosing to have their health insurance
as the primary source of coverage for medical expenses, instead
of their PIP, will result in a reduction of about $_____. *
Total Approximate Premium: $______
B. Choosing to have PIP (medical expense) coverage of
$75,000 instead of the commonly selected $250,000 and a PIP
deductible of $1,000 will result in a reduction of about $_____.
Total Approximate Premium: $______
C. Choosing the coverage limit and deductible in B. and the
“Medical Expense Only” option, (which excludes income
continuation benefits, essential services benefits, death benefits,
and funeral expense benefits) will result in a reduction of about
$______.
Total Approximate Premium: $______
* Check with your health plan. Not all plans offer this option.
A. Excluding all physical damage coverage on the older
vehicle will result in a reduction of about $_____.
Total Approximate Premium: $_____
B. Use of a $1,000 deductible for physical damage on the
late-model vehicle will result in a reduction of about $_____.
Total Approximate Premium: $_____
C. If the 19-year-old daughter does not ever drive the latemodel
vehicle, use of the “Named Driver Exclusion” for the
daughter on the late-model vehicle will result in a reduction of
about $___.
Total Approximate Premium: $______
D. Choosing to exclude the older vehicle from all physical
damage coverage and to apply the higher $1,000 deductible on
the newer vehicle will result in a reduction of about $____.
Total Approximate Premium: $______
NJ Auto Insurance Scenario 2:
Commonly selected
Coverages and
Deductibles with
Alternate Medical
Expense (Personal
Injury Protection or
“PIP”) coverage.
(The premium for the
PIP portion of the
policy in the example
above is about
$______.)
NJ Auto Insurance Scenario 3:
Commonly selected
Bodily Injury Liability
and Medical
Expense Coverages,
but the Policyholder
wishes to save
money on coverage
for damage to their
vehicles.
(The premium for the
Physical Damage
portion of the policy
in the example above
is about $_____.)
4
After considering their options, the policyholders decide that they want to retain an unlimited
right to sue, but choose other options to reduce their auto insurance costs. Using options 1A, 2A,
3A and 3B, their total NJ Auto Insurance premium becomes approximately $______, for a savings of about
$ below the cost of the commonly selected coverage levels and deductible amounts.
Note: Because numerous factors are considered when rating an application for auto
insurance, your individual circumstances will, in all probability, result in your being quoted a
price for coverage similar or identical to the coverage levels included in these scenarios that is
different from any dollar amount(s) reflected above. Pursuant to N.J.A.C. 11:3-47.3 (c),
insurers and producers are not liable for the coverage choices made by applicants on a
properly executed NJ Coverage Selection form.
You may be able to save money on auto insurance by opting to have your health coverage provide benefits for injuries from an automobile accident. Please consider the factors below to see if this option is right for you.
Aetna Life Insurance Company
AmeriHealth Insurance Co of New Jersey
Connecticut General Life Insurance Co
Guardian Life Insurance Co of America
GE Group Life Insurance Co
Mutual/United of Omaha Insurance Companies
Nippon Life Insurance Co of America
Oxford Health Insurance Co
Trustmark Insurance Co
UniCare Life & Health Insurance Co
United HealthCare Insurance Co
Wellchoice Insurance Co of New Jersey
NEW JERSEY Insurance
NJ Auto Insurance NJ AUTO PHYSICAL DAMAGE CLAIMS
11:3-10.1 Scope
This subchapter applies to claims arising under motor vehicle collision and comprehensive coverages.
11:3-10.2 Definitions
The following words and terms, when used in this subchapter, shall have the following meanings unless the context clearly
indicates otherwise:
"Actual cash value", unless otherwise specifically defined by law or policy, means the lesser of the amounts for which the
insured or the designated representative can reasonably be expected to:
1. Repair the motor vehicle to its condition immediately prior to the loss; or
2. Replace the motor vehicle with a substantially similar vehicle. The amount shall include all moneys paid or payable as
sales taxes on the motor vehicle repaired or replaced. This paragraph shall not be construed to prevent an insurer from
issuing a policy where the amount of damages to be paid in the event of a total loss is a specified dollar amount.
"Agreed price" or "figure" means the amount agreed to by the insurer and the insured, or their representatives, as the
reasonable cost to replace the motor vehicle or to repair damages to the motor vehicle resulting from the loss, without
considering any deductible or deductions.
"Designated representative" means a person designated by the insured to represent the insured in negotiations with the
insurer in an attempt to settle the claim. The designated representative may be any person authorized by the insured who may
act legally in his or her behalf.
"Motor vehicle" shall have the meaning ascribed in N.J.S.A. 39:1-1.
"Substantially similar vehicle" means a vehicle of the same make, model, year and condition, including all major options of
the insured vehicle. Mileage must not exceed that of the insured vehicle by more than 4,000 miles. Mileage differences of
more than 4,000 miles may, at the option of the insured, be exchanged for the presence or absence of options or a cash
adjustment.
11:3-10.3 Adjustment of partial losses
(a) If the insurer intends to exercise its right to inspect, or cause to be inspected by an independent appraiser, damages prior
to repair, the insurer shall have seven working days following receipt of notice of loss to inspect the insured's damaged
vehicle, which is available for inspection, at a place and time reasonably convenient to the insured; commence negotiations;
and make a good faith offer of settlement.
(b) Negotiations must be conducted in good faith, with the basic goal of promptly arriving at an agreed price. Early in
negotiations, the insurer must inform and confirm in writing to the insured or the insured's designated representative all
deductions that will be made from the agreed price, including the amount of applicable deductible.
(c) If the insurer inspects the damaged vehicle or causes it to be inspected, the insurer shall promptly upon completing the
inspection furnish the insured or the designated representative of the insured with a detailed written estimate of the cost of
repairing the damage resulting from the loss, specifying all appropriate deductions.
(d) No insurer shall negotiate the settlement of any physical damage claim involving an automobile as defined at N.J.S.A.
39:13-1b with an unlicensed auto body repair facility or in any manner utilize an unlicensed facility in the adjustment,
negotiation or settlement of such a claim. It shall be the responsibility of the insurer to make a reasonable and diligent effort
to determine whether the facility is properly licensed.
(e) Subject to the requirements of (d) above, the insured may use any repair facility of his or her own choice. With respect to
automobile damage claims, the insurer shall notify in writing any insured who elects to use his or her own repair facility that,
pursuant to law, any entity engaged in the business of auto body repairs must be duly licensed. The notice shall further
advise the insured that the insurer is prohibited by law from negotiating, adjusting or settling an automobile damage claim
with an unlicensed facility. The written notice shall be furnished at the time of acknowledgment of the claim as provided at
N.J.A.C. 11:2-17.6 or upon the furnishing of its written estimate, as specified at (c) above, whichever is sooner. The insurer
must make all reasonable efforts to obtain an agreed price with the facility selected by the insured. The insurer may
recommend, and if the insured requests, must recommend a qualified repair facility at a location reasonably convenient to the
insured motor vehicle who will repair the damaged motor vehicle at the insurer's estimated cost of repairs, but in either event
the provisions of (g) below apply.
(f) All estimates, including revisions and adjustments, prepared by any repair facility, estimator or appraiser must be
included in each claim file.
(g) If the insured's vehicle is repaired at a repair facility whose name is furnished by the insurer under (e) above for a sum
estimated by the insurer as the reasonable cost to repair the vehicle, the insurer:
1. Shall select a repair facility that issues written guarantees that any work performed in repairing damaged vehicles meets
generally accepted standards for safe and proper repairs;
2. Shall cause the damaged vehicle to be restored to the condition it was in prior to the loss, at no additional cost to the
insured and within a reasonable time, if the repair facility does not repair the damaged vehicle in accordance with generally
accepted standards for a safe and proper repair.
(h) Whenever an insurer elects to repair its insured's vehicle, that is, physically take the vehicle and have it repaired, the
election must be in writing addressed to the insured and contain a reasonable estimate of the time period within which the
vehicle will be repaired. The insurer shall guarantee, in writing, that the work performed meets generally accepted standards
for safe and proper repairs.
(i) Deductions for betterment and depreciation are permitted only for parts normally subject to repair and replacement during
the useful life of the insured motor vehicle. Deductions for betterment and depreciation shall be limited to the lesser of an
amount equal to the proportion that the expired life of the part to be repaired or replaced bears to the normal useful life of that
part, or the amount by which the resale value of the vehicle is increased by the repair or replacement. Calculations for
betterment, depreciation and normal useful life must be included in the insurer's claim file.
(j) Deductions for previous damage or prior condition of the vehicle must be measurable, discernible, itemized and specific
as to the dollar amount, and those deductions must be included in the insurer's claim file. The deductions shall be limited to
the amount by which the resale value of the motor vehicle is increased by the estimation of the previous damage or the
correction of the prior condition.
(k) The insurer must mail or hand deliver to the insured or the designated representative its proof of loss or payment within
five working days after the insured has accepted the insurer's offer.
(l) The insured shall have the right to receive the proceeds of any settlement. The insurer may not insist on making
settlement proceeds jointly payable to the insured and the repair facility, or payable to the repair facility only.
(m) The insured may elect to have the insurer pay the repair facility directly in order to expedite recovery of the motor
vehicle. The insured must make this election in writing.
11:3-10.4 Adjustment of total losses
(a) If the insurer elects to make a cash settlement, it must bear in mind at all times that the insured's position is that of a
retail consumer and the settlement value arrived at must be reasonable and fair for a person in that position. Written,
itemized valuations showing all options and deductions shall be included in the insurer's claim file and presented to the
insured no later than the date of payment. If the insurer elects to make a cash settlement, its offer, subject to applicable
additions or deductions, must be one of the following plus applicable sales tax:
1. The average of the retail values for substantially similar motor vehicles as listed in the editions current for the date of loss
of two valuation manuals approved by the Commissioner.
i. The average figure arrived at may be reduced or increased by considering all factors, including, but not limited to,
mileage tables and the presence or absence of extras.
ii. If the destroyed vehicle included an option which is listed in one manual but not in the other, the value of the option shall
not be averaged. The insured shall receive full value for the option by carrying over the amount listed to the other manual.
The option carryover shall apply only in those instances where the option has not been considered by the used vehicle guide
either as a separate item or included in the vehicle's base value.
iii. If a manual is submitted for approval by the Commissioner its accuracy must meet objective criteria for the values of
substantially similar vehicles of at least 85 percent of all makes and models for the last 15 years and shall include all major
options. A sufficient number of vehicles shall be used for each year, make and model to represent a cross-section sufficient
to determine fair market values. At the time of request for approval, the source of the manual's data must be revealed to the
Commissioner in a manner that can be verified by the Department. Manuals approved for use on or after January 1, 1976 are
"Automobile Red Book" and "Older Car/Truck Red Book" published by Maclean Hunter Market Reports, Inc. and the
"N.A.D.A. Official Used Car Guide" and "N.A.D.A. Official Older Car Guide" published by the National Automobile
Dealers Used Car Guide Company.
2. A quotation obtained by the insurer for a substantially similar motor vehicle from a dealer located within a reasonable
distance from the principal place of garagement of the insured vehicle. Unless otherwise agreed by the insured, a reasonable
distance shall not exceed 25 miles from the principal place of garagement. The vehicle must be available for purchase by the
insured and the insured must be able to purchase it for the insurer's cash offer plus applicable deductions. The insurer shall
maintain in its claim file proof of the vehicle's availability and the name and location of the dealer, stock number, vehicle
identification number and description of the substantially similar vehicle.
3. The fair market value of the insured vehicle, determined by using a source including a computerized database approved
by the Commissioner that meets all of the following minimum criteria:
i. The source must give primary consideration to the values of vehicles in the local market area, but if necessary to obtain a
reasonable cross-section of the market, may consider vehicles in the next closest area.
ii. The source shall produce fair market values of substantially similar vehicles for at least 85 percent of all makes and
models for the last 15 years and shall include all major options. A sufficient number of vehicles must be used for each year,
make, and model to represent a cross-section of the market sufficient to determine fair market value.
iii. If the database uses several price ranges for the same model vehicle depending on the condition of the vehicle, it must
clearly indicate what condition the vehicle is being valued at and define in detail the difference between such rating
categories. Documentation of the condition of the insured vehicle must be made a part of the written valuation.
iv. At the time of request for approval the source of the database shall be revealed to the Commissioner in a manner that can
be verified by the Department.
4. If it is not possible to value the insured vehicle by using the method set forth in (a)1, 2 and 3, the insurer shall determine
the retail value of the vehicle by using the best available method and shall fully explain in writing to the insured how its offer
was calculated.
(b) If the insurer is notified in writing within 30 calendar days of the receipt of the claim draft that the insured cannot
purchase a comparable vehicle at the market value established by the insurer, the insurer shall reopen its claim file and the
following procedures will apply:
1. The insurer may locate a substantially similar vehicle by the same manufacturer of the same year, make and model, with
similar options, mileage, and condition as the destroyed vehicle from a licensed dealer. Such vehicle must be within a
reasonable distance not to exceed 25 miles from the insured's principal place of garaging;
2. The insurer shall either pay the difference between the market value before applicable deductions and the cost or the
market value as determined by (a)2 above of a substantially similar vehicle located by the insured or negotiate and effect
purchase of this vehicle for the insured;
3. The insurer may elect to offer a replacement vehicle in accordance with the provisions as in (e) below; or
4. The insurer or insured may conclude the loss settlement as provided for under the appraisal section of the insurance
contract in force at the time of loss. This appraisal shall be considered as binding against both parties, but shall not preclude
or waive any other rights either party has under the insurance contract or under law.
(c) The insurer shall advise the insured in writing of the rights of recourse at the time the settlement draft is issued and retain
a copy of the notice in its claim file.
(d) An insurer shall use the same source of settlement for all claims unless it is documented that the primary settlement
source is not available in the case of a particular vehicle. At the request of the Commissioner, the insurer shall provide the
Department with its primary source of valuation for vehicles.
(e) If the insurer elects to replace the vehicle, the replacement vehicle must be an immediately available, substantially similar
vehicle that is both furnished and paid for by the insurer, subject to the deductible, if any, and including applicable sales tax.
(f) If the insured vehicle is a private passenger automobile of the current model year, meaning that the vehicle has not been
superseded in the market place by an officially introduced succeeding model, the insurer shall utilize one of the following
methods in the settlement of the loss, unless the utilization of (a) or (b) above is more favorable to the consumer.
1. Either the insurer shall pay the insured an amount equal to the reasonable purchase price on the date of the loss of a new
identical vehicle, less any applicable deductible and an allowance for depreciation in accordance with the schedule below;
or
2. The insurer shall provide the insured with a new identical replacement vehicle charging the insured for any applicable
deductible and for depreciation in accordance with the schedule below:
Depreciation Schedule
Purchase Price Depreciation per mile
Up to $ 6,500 $0.10
$ 6,501-$ 8,000 0.12
8,001- 10,000 015
10,001- 12,000 0.18
12,001- 15,000 0.21
15,001- 20,000 0.25
More than $20,000 0.29
(g) In the event of a total loss, any parts of the insured vehicle included in its valuation which are removed by the insured or
the designated representative shall have their value deducted from the final settlement figure. This section shall not be
construed to grant a right of removal.
(h) The following provisions of N.J.A.C. 11:3-10.3 also shall apply to the adjustment of total losses, except that the insurer
shall have a total of 14 working days to comply with the requirements of subsections (a), (b), (c), (h), (i), (j) and (k) of
N.J.A.C. 11:3-10.3.
(i) This section does not prohibit an insurer from issuing a stated value policy insuring against physical damage where the
amount of damages to be paid in the event of a total loss is a specified dollar amount.
(j) If the vehicle is a total loss, the insurer may require that the insured transfer ownership of the vehicle to recoup salvage as
a condition of settlement.
11:3-10.5 Unreasonable delay
(a) Unless a clear justification exists, physical damage claims will have a maximum payment period of 30 calendar days. A
payment period is the period between the date of the receipt of the notice of loss by the insurer, and:
1. The date the settlement check is mailed; or
2. The date on which the damaged vehicle is returned to use when the insurer elects to repair or have repaired the insured
vehicle; or
3. The date on which the damaged vehicle is replaced by the insurer.
(b) If any element of a physical damage claim remains unresolved more than 30 calendar days from the date of receipt of
notice of loss by the insurer, the insurer shall provide the insured with a written explanation of the specific reasons for delay
in the claim settlement. An updated letter of explanation shall be sent again every 30 calendar days thereafter until all
elements of claim are either honored or rejected.
(c) Any letter of explanation, rejection or acceptance of any element of a claim shall contain in the upper right hand corner
the date of receipt of notice of loss by the insurer and be identified as such. The letter shall also contain the identity and
claim processing address of the insurer, and the insured's policy number and claim number.
11:3-10.6 Loss of use
In the event of the theft of the entire vehicle the insurer at the time of notification shall advise the insured of his or her right
under the policy to be reimbursed for transportation expenses. The notification must be confirmed in writing immediately
after receipt of notice of theft. All conditions and benefits related to this coverage as stated in the policy must be contained in
the notification to the insured.
11:3-10.7 Subrogation agreements
(a) If an insured has received payment under his or her physical damage coverage that is subject to a deductible, the insured
shall share, pro rata, with the insurer any net recovery received by the insurer from third parties.
(b) Net recovery shall be the total recovery less the insurer's allocated loss adjustment expenses attributable to such recovery.
The formula for computing net recovery and the insured's share of recovery of the deductible may be stated as follows:
1. Total recovery – Allocated loss adjustment expenses = Net recovery
(Deductible ÷ Total Loss) × Net recovery = Insured’s share of recovery.
2. Application of formula: Assume a loss of $500.00 subject to a $100.00 deductible with a $50.00 in allocated loss
adjustment expense:
i. If there is full recovery of $500.00; computation of net recovery: $500.00 - $50.00 = $450.00
Computation of insured’s share of recovery: ($100.00 ÷ $500.00) × $450.00 = $90.00
ii. If there is a partial recovery of $300.00: computation of new recovery: $300.00 - $50.00 = $90.00
Computation of insured’s share of recovery: ($100.00 ÷ $500.00) × $250.00 = $50.00
(c) Unless the insurer returns its insured's full deductible the insured shall attempt to effect full recovery in clear liability
cases and shall not enter into any intercompany agreements that provide for the acceptance of lesser amounts on a formula
basis.
(d) If an insurer has paid a physical damage claim that is subject to a deductible and it elects not to pursue its subrogation
claim where the probability of recovery exists, the insurer shall so notify its insured in writing within 60 calendar days after it
has paid the claim, except that the notification shall be given at least 30 days prior to the running of any applicable statute of
limitations or period required for notice of claim. If an insurer does not notify its insured within the time periods prescribed
above and the statute of limitations or period required for notice or claim has expired, the insurer shall forthwith remit to its
insured the full amount of the insured's deductible.
11:3-10.8 Repair estimates
If the insurer requires that its insured obtain more than one e
