PLNJmedium
Under AICRA, what is the practical effect of an insured electing the 'health insurance as primary' PIP option on a New Jersey Standard Policy?
AThe insured forfeits all PIP medical benefits regardless of the nature of the injury sustained
BMedicare and Medicaid are barred from being primary under any health-primary election
Health insurer pays first; PIP becomes secondary, generally lowering the auto premium
DThe PIP medical expense limit is automatically raised to $1,000,000
Why this is the answer
AICRA permits an insured to elect health insurance as the primary payer for accident-related medical bills. PIP becomes secondary, covering deductibles, copays, and bills not paid by the health plan. The option typically reduces auto premium, but it requires that the insured carry qualifying health coverage at the time of any accident.
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