PLNJeasy
In New Jersey personal auto, what is the function of the Personal Automobile Insurance Plan (PAIP)?
AA direct-writer state insurer that competes with the voluntary market on premium pricing and coverage options for all licensed New Jersey drivers
BA reinsurance pool exclusively for catastrophic PIP claims exceeding $250,000 per person per accident under any standard policy
CA premium-financing arm of DOBI
A residual market mechanism that assigns drivers unable to obtain coverage in the voluntary market to participating insurers
Why this is the answer
The Personal Automobile Insurance Plan is New Jersey's residual market for personal auto. Drivers who cannot obtain coverage in the voluntary market apply to PAIP through a producer; assignments rotate among carriers writing auto in NJ in proportion to their voluntary-market share. The Plan offers minimum statutory limits with options for higher coverage subject to underwriting.
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