PLNJeasy
Which statement most accurately describes New Jersey's private passenger auto insurance regime under AICRA?
ANew Jersey is a pure at-fault state with no PIP requirement
BNew Jersey requires PIP only for commercial vehicles
New Jersey is a mandatory PIP no-fault state with tort-threshold selection between Verbal Threshold and No-Limit
DNew Jersey operates a state-administered single-payer auto medical fund that replaces insurer PIP obligations for registered private passenger automobiles
Why this is the answer
Under AICRA at N.J.S.A. 39:6A, New Jersey requires PIP coverage on every registered private passenger auto and requires the named insured to elect either the Limitation on Lawsuit (Verbal Threshold) or No Limitation on Lawsuit (Zero Threshold) tort option at policy inception.
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