N.J. Admin. Code § 11:3-1.11

Current through Register Vol. 56, No. 21, November 4, 2024

Section 11:3-1.11 - CAIP coverage

(a) CAIP shall provide to CAIP qualified applicants, bodily injury liability and property damage liability coverages as follows:

1. CAIP shall provide basic combined single limit of $ 35,000 and statutory uninsured motorist coverage except:

i. When limits in excess of the basic combined single limit of $ 35,000 are required by law, the plan shall offer limits adequate to comply with the minimum requirements of that law, except with respect to limits over $ 5 million in which case excess coverage is conditioned upon the plan being able to secure facultative reinsurance. CAIP shall provide a policy for limits less than the minimum requirements of the law when evidence of adequate excess insurance is provided by the producer or the insured.

ii. CAIP shall provide limits adequate to comply with the provisions of the financial responsibility law of any state in which the motor vehicle will be operated, but only while the vehicle is being operated in that state.

iii. CAIP shall also offer the optional limits of liability as specified in the AIP plan of operation.

(b) CAIP shall offer to CAIP qualified applicants, additional uninsured or underinsured motorist coverage as follows:

1. Additional uninsured and underinsured motorist coverage shall be provided as an option to the named insured up to the limits set forth in N.J.S.A. 17:28-1.1b and subject to the deductibles specified in the AIP plan of operation. The limits for uninsured and underinsured motorist coverage shall not exceed the insured's motor vehicle liability policy limits for bodily injury and property damage respectively.

2. Uninsured and underinsured motorist coverage shall not be increased by stacking the limits of coverage of multiple motor vehicles covered under the same policy of insurance nor shall these coverages be increased by stacking the limits of coverage of multiple policies available to the insured. If the insured had uninsured motorist coverage available under more than one policy, any recovery shall not exceed the higher of the applicable limits of the respective coverages and the recovery shall be prorated between the applicable coverages as the limits of each coverage bear to the total of the limits.

3. Uninsured motorist coverage shall be subject to the policy terms, conditions, and exclusions approved by the Commissioner, including, but not limited to, unauthorized settlements, nonduplication of coverage, subrogation, and arbitration.

(c) CAIP shall provide to CAIP qualified applicants, standard and additional personal injury protection coverage as follows:

1. With respect to those automobiles subject to the New Jersey Automobile Reparation Reform Act, N.J.S.A. 39:6A-1 et seq., CAIP shall provide personal injury protection coverage under every automobile liability policy as required by the Act and shall also offer to the named insured additional Personal Injury Protection as required by the Act and by regulations promulgated by the Commissioner thereunder.

(d) CAIP shall provide to CAIP qualified applicants, physical damage coverage as follows:

1. CAIP shall only offer physical damage coverage to:

i. Private passenger vehicles;

ii. Private passenger type vehicles;

iii. Light trucks;

iv. Motorcycles;

v. Recreational trailers (excluding trailers used as residences); and

vi. Social services vehicles of the private passenger, station wagon, van, or minibus type owned by or operated on behalf of a non-profit entity used to transport persons without charge.

2. Notwithstanding (d)1 above, as necessary to ensure the plan's efficient operation, the CAIP plan of operation shall provide that physical damage coverage shall not be offered to certain vehicles, including, but not limited to:

i. Risks consisting of fleets of 10 or more vehicles not including trailers and semi-trailers;

ii. Vehicles more than 25 or more years old;

iii. Vehicles with a seating capacity in excess of 20;

iv. Any emergency type vehicle; and

v. Any vehicle which is operated under a registration plate not issued for a specific vehicle.

3. Comprehensive and collision coverage shall be provided on an actual cash value basis, less deductible, subject to a maximum loss payable of $ 60,000 or such amount at which physical damage coverage may be exported in accordance with the exportable list promulgated by the Commissioner pursuant to N.J.S.A. 17:22-6.43. CAIP shall also offer optional higher deductibles as specified in the plan of operation.

4. Physical damage coverage shall be offered only in connection with a policy written by the plan affording bodily injury and property damage coverage.

5. Upon request, CAIP shall issue a loss payable clause for the benefit of a lienholder.

N.J. Admin. Code § 11:3-1.11

Adopted by 50 N.J.R. 565(a), effective 1/16/2018