New Jersey Administrative Code
Title 11 - INSURANCE
Chapter 3 - AUTOMOBILE INSURANCE
Subchapter 1 - COMMERCIAL AUTOMOBILE INSURANCE PLAN
Section 11:3-1.11 - CAIP coverage
Universal Citation: NJ Admin Code 11:3-1.11
Current through Register Vol. 56, No. 6, March 18, 2024
(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.
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