PLNJhard
On a New Jersey Standard auto policy, if the named insured does not affirmatively elect a tort option in writing at policy inception, which tort threshold applies by operation of law under N.J.S.A. 39:6A-8?
ANo-Limitation on Lawsuit (Zero Threshold) applies by default
BThe insurer must refuse to issue the policy until the insured elects
Limitation on Lawsuit (Verbal Threshold) applies by default
DThe Basic Policy is automatically substituted
Why this is the answer
N.J.S.A. 39:6A-8 requires the named insured to elect either the Limitation on Lawsuit (Verbal Threshold) option or the No Limitation on Lawsuit (Zero Threshold) option. If no written election is made at policy inception, the Verbal Threshold applies by default because it carries the lower premium associated with restricted tort access.
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