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New Jersey insurance laws

Insurance regulations, rate filing requirements, department info, and recent bulletins for New Jersey. Updated Apr 1, 2026.

Department of Insurance

DepartmentNew Jersey Department of Banking and Insurance
CommissionerSusan Ochs
Rate Filing SystemPrior Approval
Regulatory CodeN.J.S.A. 17:17-1 et seq., 17:22-1 et seq., 17B:17-1 et seq.
Overview

New Jersey maintains a stringent regulatory environment with prior approval required for most rate changes. The Department of Banking and Insurance oversees all insurance activities including banking, insurance, and real estate licensing. The state has enacted comprehensive consumer protection laws including an individual health insurance mandate, expanded Medicaid, and requires high minimum auto insurance coverage with no-fault PIP system.

Auto Insurance

Min Pd$25,000
Pip Min$15,000
StatuteN.J.S.A. 39:6A-1 et seq.
Fault SystemNo-fault (Choice)
Min Bi Per Person$35,000
Uninsured Penalty$300-$1,000 fine for first offense, 1-year license suspension, $250/year surcharge to DMV for 3 years, community service
Min Bi Per Accident$70,000
Sr22 Duration Years3
Noncompliance PenaltyInsurers face fines up to $5,000 per violation, license suspension or revocation for non-compliance with rate filing requirements, coverage mandates, or unfair trade practices; criminal penalties for fraud
Rate Filing RequirementPrior approval required for all private passenger auto rate changes per N.J.S.A. 17:29A-46; insurers must file rates at least 30 days before effective date with actuarial justification
Avg Full Coverage Premium$1,850

Notable Laws

  • N.J.S.A. 39:6A-3: Compulsory automobile insurance coverage with minimum liability limits of $35,000/$70,000 for bodily injury and $25,000 property damage (as of 2026)
  • N.J.S.A. 39:6A-4: Personal injury protection (PIP) coverage of $15,000 minimum regardless of fault, covering medical expenses and lost wages
  • N.J.S.A. 39:6A-8: Tort exemption and limitation on lawsuit option - policyholders choose unlimited or limited right to sue
  • N.J.S.A. 39:6B-2: Penalties for driving without insurance including fines, license suspension, and surcharges
  • P.L. 2022, c.87 (S481): Phased increases to minimum coverage limits implemented in 2023 and 2026

Homeowners Insurance

StatuteN.J.S.A. 17:36-1 et seq.
Wind PoolNo separate wind pool; windstorm and hurricane damage covered in standard policies with potential special deductibles
Fair Plan NameNew Jersey Insurance Underwriting Association (NJIUA) / FAIR Plan
Noncompliance PenaltyInsurers face fines of $2,500-$5,000 per violation for improper cancellations, inadequate notice, unfair underwriting practices, or discriminatory pricing
Rate Filing RequirementPrior approval required for homeowners rate changes; insurers must file rates with actuarial justification demonstrating they are not excessive, inadequate, or unfairly discriminatory

Notable Laws

  • N.J.S.A. 17:36-5.21: Homeowners insurance cancellation and nonrenewal notice requirements with specific timelines
  • N.J.A.C. 11:1-20.2: Renewal, nonrenewal, and cancellation regulations requiring written notice and stated reasons
  • P.L. 1968, c.129: Establishment of New Jersey Insurance Underwriting Association (FAIR Plan) for property coverage of last resort
  • N.J.A.C. 11:1-5.3: FAIR Plan short notice cancellation procedures requiring minimum 10-day notice for non-payment
  • N.J.S.A. 56:8-163: Data breach disclosure requirements applicable to insurers maintaining personal information

Recent Bulletins

The Use of Artificial Intelligence Systems in Insurance

#25-032025-02-11

Reminds insurers that AI-driven decisions impacting consumers must comply with all insurance laws including anti-discrimination, transparency, and explainability requirements. Insurers using AI must ensure decisions are fair, non-discriminatory, and explainable.

View bulletin

Auto Insurance Coverage Limits Pursuant to P.L.2022, c.87

#25-062025-08-05Effective: 2026-01-01

Reminder of Phase 2 implementation of increased minimum auto insurance limits effective January 1, 2026; requires private passenger auto insurers to file updated rates by September 1, 2025 and commercial auto insurers by January 30, 2026.

View bulletin

Coverage for Mental Health Conditions and Substance Use Disorders, Implementation of P.L. 2019, c. 58 and P.L. 2022, c. 33

#24-142024-09-09Effective: 2025-01-01

Provides comprehensive guidance on mental health parity requirements including quantitative treatment limitations (day/visit limits) and non-quantitative treatment limitations (prior authorization, formulary design). Requires compliance with enhanced parity laws.

View bulletin

Coverage for Hearing Aids and Cochlear Implants and Maximum Cost Sharing

#24-162024-01-16Effective: 2025-01-01

Implements mandatory coverage for hearing aids and cochlear implants under P.L. 2023, c.275, and establishes maximum annual cost-sharing limits of $25 for diabetes medications, asthma inhalers, and epinephrine auto-injectors under P.L. 2023, c.105.

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Ensuring Transparency in Prior Authorization Act (P.L. 2023, c. 296)

#24-172024-01-16Effective: 2025-01-01

Implements new prior authorization transparency requirements: 72-hour decisions for urgent requests, 7-day decisions for standard requests, automatic approval if deadlines missed, and annual reporting of prior authorization statistics to Department.

View bulletin

Recent Law Changes

S2783 (P.L. 2025, c.153)2025Commercial Insurance

Travel Insurance Act

Creates comprehensive legal framework for sale of travel insurance in New Jersey, establishing licensing requirements for travel insurance producers, consumer protection standards, and disclosure requirements for travel insurance programs.

Travel insurance sellers and insurers must comply with new licensing, disclosure, and consumer protection requirements

Effective: 2025-10-20

A5217 (P.L. 2025, c.199)2025Health Insurance

Third-Party Discount and Payment Application to Out-of-Pocket Costs

Requires that third-party discounts and payments (including manufacturer copay assistance programs) must apply toward insured's copayments, coinsurance, deductibles, and annual out-of-pocket maximums in accordance with federal law.

Consumers using manufacturer copay assistance programs will have those amounts count toward their annual out-of-pocket maximums

Effective: 2026-01-09

S1320 (P.L. 2025, c.84)2025Property Insurance

Licensed Public Adjusters Act Amendments

Amends and supplements the Licensed Public Adjusters Act to strengthen consumer protections, requiring specific contract information, enhanced licensing requirements, and professional conduct standards for public adjusters.

Public adjusters face enhanced licensing requirements and must provide detailed contract information to protect policyholders

Effective: 2025-07-01

A4457 (P.L. 2024, c.34)2024Life Insurance

Life and Health Insurance Guaranty Association Coverage Increase for Annuities

Increases the coverage limit provided by the New Jersey Life and Health Insurance Guaranty Association for net cash surrender and withdrawal values for certain annuity policies and contracts from $100,000 to $250,000.

Annuity policyholders receive enhanced protection up to $250,000 in cash values if their insurer becomes insolvent

Effective: 2024-07-10

S2535 (P.L. 2023, c.275)2023Health Insurance

Coverage for Hearing Aids and Cochlear Implants

Requires health insurance policies to provide coverage for hearing aids and cochlear implants for individuals of all ages, including procedures for implantation, devices, accessories, and maintenance, removing previous age restrictions.

All health insurance plans must cover hearing aids and cochlear implants without age restrictions or categorical exclusions

Effective: 2025-01-01

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