Auto Insurance, Workers Compensation, and Casualty-Specific Regulations
This chapter focuses on New Jersey insurance regulations that apply ONLY to Casualty/Liability insurance - not life, health, or property insurance:
Chapter 4 vs Chapter 5:
Chapter 4 covered laws common to ALL lines of insurance (licensing, trade practices, fraud). Chapter 5 covers laws that apply ONLY to casualty/liability insurance - things like auto insurance requirements and workers compensation.
Overview of NJ regulations specific to casualty/liability insurance
Mandatory coverage, Standard vs Basic policies, PIP, UM/UIM, PAIP, CAIP, SAIP
Employer liability, benefits, exempt employees, Assigned Risk Plan, CRIB
Deregulation Act of 1982, filing requirements, rate standards, special risks
60-day rule, 13 valid reasons, notice requirements, auto cancellation rules
Diligent effort requirement, 3 declinations, exportable list
Master policies, financed auto requirements, 20-day delivery, 8 point type
Quick reference summary - coming after all parts are complete
Standard = 25/50/25 with BI liability. Basic = $5,000 PD only (BI is optional). This is a common exam question!
Personal Injury Protection pays regardless of who caused the accident. Remember the tort options: Limitation vs No Limitation on lawsuit.
NJ Workers Comp is "elective" - but if employers reject it, they lose common law defenses. So in practice, everyone participates.
Reinforce your learning with flashcards and quizzes for this chapter