New Jersey Orders Auto Insurers to Submit Underwriting Guidelines and Rules

On April 6, 2023, the New Jersey Department of Banking and Insurance (DOBI) issued Order A23-01 and Bulletin No. 23-04 regarding the underwriting guidelines and rules of private passenger automobile policies in force in New Jersey.

Due to an increase in thefts of certain models of Kia and Hyundai automobiles in the United States, the DOBI has become aware that insurers may be stopping or refusing to insure these impacted vehicles. As a result, the DOBI Bulletin/Order, among other things:

• Informs insurers of the Department's position on this matter;
• Reminds insurers of their relative responsibilities and limitations of authority; and
• Outlines the Department's expectations for insurers' alterations, supplements, amendments, or application of their rates, rating systems, or any part thereof, including an insurer's option of filing amended rates to reflect the commensurate risk of any exposure.

The DOBI has ordered all authorized and admitted property/casualty insurers that have private passenger automobile policies in force as of the date of the Order to provide the Department with copies of their private passenger automobile underwriting guidelines and rules applicable between January 1, 2023 and the date of Order No. A23-01. Any additional changes made to underwriting guidelines during this period should also be filed with the Department. The guidelines must be submitted to DOBI by April 14, 2023. In addition, any changes implemented between the date of Order No. A23-01 and prior to December 31, 2023 must be submitted to the Department within five days of implementation. Documents must be e-mailed to market.analysis@dobi.nj.gov.

Please contact Assistant Commissioner Carl Sornson directly with any questions or concerns at 609-940-7616 or Carl.Sornson@dobi.nj.gov.

Link to Order A23-01

Link to Bulletin No. 23-04