Current through Register Vol. 56, No. 6, March
18, 2024
(a) For all
policies providing automobile physical damage coverage issued on or after June
1, 1991, or renewed on or after July 1, 1991, insurers may adopt any one of the
following procedures:
1. Amend the policy by
adding thereto the endorsements as set out in (c) below, which may include the
option set forth in (d) below and which is hereby deemed approved upon filing
with the Department;
2. Submit for
Department approval the insurer's own similar endorsement; or
3. Submit for Department approval the
insurer's basic policy form incorporating the substance of the endorsements set
out in (c) below, which may include the option set forth in (d)
below.
(b) An insurer
which adopts any of the above procedures may subsequently submit filings under
any of the other procedures.
(c)
The required endorsement is as follows: New Jersey Mandatory Inspection
Endorsement for Physical Damage Coverage. Notwithstanding any conflicting
provisions contained in the automobile physical damage coverage of this policy,
it is agreed that the following conditions are added:
1. The company or its authorized
representative has the right to inspect any private passenger automobile,
including a nonowned automobile, insured or intended to be insured under this
policy before physical damage coverage shall be effective.
2. During the term of the policy, coverage
for an additional or replacement private passenger automobile shall not become
effective until the insured notifies the company and requests coverage for the
automobile.
3. When an inspection
is required by the company the insured shall cooperate and make the automobile
available for the inspection.
(d) Insurers which elect to provide physical
damage coverage for a replacement automobile for three days without an
insured's request for coverage in accordance with
11:3-36.5 may substitute the
following provision for item 2 in the endorsement in (c) above:
1. During the term of the policy, coverage
for an additional or replacement private passenger automobile shall not become
effective until the insured notifies the company and requests coverage for the
automobile. However, this provision does not apply to a replacement private
passenger automobile, for a period of three days, including the day on which
the automobile is acquired, if:
i. The
automobile is acquired during the policy period; and
ii. There was Physical Damage Coverage on the
vehicle replaced for at least the 12-month period preceding the replacement
date.
(1) The three-day period in paragraph 1
above shall be extended by one day for each Saturday, Sunday or New Jersey
State holiday falling within the three-day period.
