N.J. Admin. Code § 11:3-36.4

Current through Register Vol. 56, No. 24, December 18, 2024

Section 11:3-36.4 - Waivers of mandatory inspection

(a) An insurer shall waive a mandatory inspection when a new automobile is purchased from a franchised automobile dealership and the insurer is provided with the following documents in accordance with N.J.A.C. 11:3-36.7(e):

1. A copy of the bill of sale which contains a full description of the automobile, including all options and accessories;

2. A copy of the window sticker or advanced dealer shipping notice (invoice) showing the itemized options and equipment, the total retail price of the automobile, and any dealer installed option purchased by the customer; or

3. Vehicle buyer's order (contract) and/or the dealership invoice to the buyer, including all options and accessories.

(b) An insurer may waive a mandatory inspection under any of the following circumstances:

1. When the automobile is more than seven model years old. For example: in 1991 an insurer shall inspect 1984 and newer model year vehicles and in 1992 an insurer shall inspect 1985 and newer model year vehicles;

2. When a policy is being renewed or issued by a different individual insurance company within a group of affiliated companies;

3. When the insured automobile is insured under a commercially rated policy which insures five or more automobiles;

4. When an insurance producer or insurer is transferring a book of business from one insurer to another insurer(s);

5. When the automobile is a temporary substitute automobile; or

6. When the automobile is leased for less than six months.

7. When the named insured has been continuously insured for automobile insurance with the same insurer, or an affiliate of the insurer, for four or more policy years.

8. Where an individual insured's coverage is being transferred by an independent insurance agent to a new insurer and the previous insurer provides the new insurer with a copy of the inspection report.

i. If the new insurer does not receive a copy of the inspection report 60 days prior to the first annual renewal date, the insurer, upon renewal of the automobile physical damage insurance, shall require a physical inspection in accordance with N.J.A.C. 11:3-36.5(e).

(c) Insurers shall maintain a record of the waiver in the insurer's file on the insured.

(d) Insurers shall decide whether to waive an inspection based solely on underwriting criteria uniformly applied and not based on the age, race, sex or marital status of the insured, the principal place of garaging or the fact that the automobile is insured in the residual market.

N.J. Admin. Code § 11:3-36.4

Amended by R.1992 d.142, effective 3/16/1992.
See: 23 N.J.R. 1262(a), 24 N.J.R. 953(b).
Text on out of State garaging deleted; (a)8 and 9 added.
Petition for Rulemaking.
See: 41 N.J.R. 2349(a), 2805(b), 3971(a).