PLNJhard
Under AICRA, what is the principal effect of a New Jersey Standard auto policy insured electing the health-primary PIP option on the Coverage Selection Form?
The insured's qualifying health insurance pays first for accident-related medical expenses, and PIP responds as excess for benefits the health plan does not cover
BPIP becomes secondary for all accident-related medical expenses, but the insured's health insurance is not required to pay first until the auto policy limits are exhausted
CThe insured automatically loses UM/UIM coverage
DThe tort threshold defaults to No-Limit regardless of the prior election
Why this is the answer
N.J.S.A. 39:6A-4.3 permits a NJ Standard Policy insured with qualifying health insurance (generally Medicare, Medicaid, or comprehensive private health coverage) to elect on the Coverage Selection Form that the health plan be primary for accident-related medical expenses. PIP then responds as excess over the health plan and pays only benefits the health insurer does not cover.
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