P&CNJmedium
Under N.J.A.C. 11:3-19A.4, how is the use of credit history limited in NJ private passenger auto rating?
ACredit history use is entirely unrestricted and may serve as the sole rating factor for determining eligibility, nonrenewal, and premium rates in all private passenger auto insurance transactions
BCredit history is required by NJ rule for every auto policy
CCredit history may only be used by surplus lines insurers
Credit history use is restricted; it cannot be the sole basis for denial, nonrenewal, or rate determination
Why this is the answer
N.J.A.C. 11:3-19A.4 places substantive limits on the use of credit history in private passenger auto insurance in NJ. An insurer may not rely on credit history as the sole basis for denial, nonrenewal, or rate determination. Credit history is not required by NJ rule, is not reserved to surplus lines, and is not unrestricted.
Studying for the NJ Property & Casualty exam?
This question comes from our P&C bank. Take a free practice test — no signup.