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A 864

Establishes an immigrant integration advisory board for each economic development region

2025 Regular Session Introduced by Phara Souffrant Forrest

Requires NJ Dept of Banking and Insurance to investigate auto premium increases tied to license suspensions, assess credit-based pricing and address data, and report within 2 years

REFERRED TO ECONOMIC DEVELOPMENT
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Bill Summary · A 864

Bill A 864 — Summary

Note on discrepancy: The bill’s listed title (“Establishes an immigrant integration advisory board for each economic development region”) does not align with the introduced text, which concerns automobile insurance practices. The summary below reflects the introduced version content. The bill’s status and sponsorship information align with the Assembly actions provided.

Overview

  • Bill number: A 864
  • Introduced: January 9, 2024
  • Primary sponsor: Phara Souffrant Forrest
  • Companions: S 1503 (senate companion); A 8406 (prior-session)
  • Current status: Referred to ECONOMIC DEVELOPMENT (with earlier reference to Assembly Financial Institutions and Insurance)
  • Purpose: To require the Department of Banking and Insurance to investigate how auto insurance premiums are increased for drivers who have had a driver’s license suspension, and to examine whether non-driving related suspensions and credit-based pricing are justified in premium determinations.

Key Provisions

  • Section 1 — Investigation by the Commissioner of Banking and Insurance

    • Commission shall investigate practices of New Jersey’s automobile insurance industry relating to premium increases for drivers with license suspensions (for any reason, whether driving-related or not).
    • The investigation shall evaluate:
    • Use of credit ratings in determining auto insurance premiums.
    • The role of addresses in premium calculations.
    • Whether non-driving-related suspensions and credit ratings justify premium increases.
    • The Commissioner must prepare a report detailing findings and transmit it to the Governor and the Legislature within two years after the investigation begins, per law governing reports to the Legislature.

  • Section 2 — Effective Date and Sunset

    • The act would take effect on the first day of the sixth month after enactment.
    • It would expire 90 days after transmittal of the required report in Section 1.

Purpose and Intent (as stated in the bill’s text)

  • Prompted by a recommendation from the Motor Vehicles Affordability and Fairness Task Force.
  • Aims to determine whether premium increases tied to license suspensions (including non-driving suspensions) are justified.
  • Evaluates the use of credit ratings and addresses in pricing.
  • Seeks to inform potential policy changes based on the investigation’s findings.

Who Would Be Affected

  • Auto insurance policyholders, particularly those with any driver’s license suspensions (driving-related or otherwise).
  • Automobile insurers operating in New Jersey.
  • Consumers whose premiums may be influenced by credit-based pricing or address data.

Timeline and Procedural Details

  • Investigation period: up to two years from the start of the investigation.
  • Reporting: findings must be transmitted to the Governor and Legislature within two years of the investigation’s start.
  • Enactment timing: effective date set to six months post-enactment; sunset occurs 90 days after the required report.

Legislative Actions and Status

  • Introduced: 2024-01-09 (Assembly)
  • Initial referral: Assembly Financial Institutions and Insurance Committee
  • Referred to Economic Development: 2025-01-08 (noted in actions)
  • Status reflects ongoing consideration within Economic Development; related bill S 1503 (companion) and A 8406 (prior-session) noted.

Compiled from official sources — confirm details with the bill’s official record.

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