The New Jersey Legislature passed Bill A4292 on Jan. 8. It was then signed into law by New Jersey’s governor on January 16.

This law goes into effect the first day of the sixth month after the law was enacted — or on July 1, 2024.

The law applies to all auto policies initiated or renewed on, or after, the law’s effective date.

The most significant aspects of the law are as follows:

1. Requires the owners of commercial motor vehicles registered or principally garaged in New Jersey to maintain liability insurance coverage of not less than $1.5 million, exclusive of interest and costs, insuring against loss resulting from liability imposed by law on account of injury or death of one or more persons in any one accident, or for damage to property in any one accident.
2. Requires the owners of commercial motor vehicles registered or principally garaged in New Jersey, where the vehicle has a gross vehicle weight rating of 10,001 or more pounds, but less than 26,001 pounds, to maintain liability coverage in the amount of $300,000, exclusive of interest and costs, on account of injury to, or death of, one or more persons in any one accident, or for damage to property in any one accident.
3. Allows the motor vehicle insurance requirements applicable to commercial motor vehicles to be satisfied by a commercial automobile insurance policy, fleet insurance policy, commercial umbrella insurance policy, commercial excess insurance policy, similar insurance policy, or any combination thereof.
4. Defines the term “commercial motor vehicle” to mean a commercial motor vehicle as defined in N.J.S.A. 39:3-10.11.  Section 39:3-10.11 defines the term “commercial motor vehicle” to mean a motor vehicle or combination of motor vehicles used or designed to transport passengers or property:
   1. If the vehicle has a gross vehicle weight rating of 26,001 or more pounds or displays a gross vehicle weight rating of 26,001 or more pounds;
   2. If the vehicle has a gross combination weight rating of 26,001 or more pounds inclusive of a towed unit with a gross vehicle weight rating of more than 10,000 pounds;
   3. If the vehicle is designed to transport 16 or more passengers including the driver;
   4. If the vehicle is designed to transport eight or more but less than 16 persons, including the driver, and is used to transport such persons for hire on a daily basis to and from places of employment;
   5. If the vehicle is transporting or used in the transportation of hazardous materials and is required to be placarded in accordance with Subpart F. of 49 C.F.R. s.172 [49 C.F.R. § 172.500 et seq.], or the vehicle displays a hazardous material placard; or
   6. If the vehicle is operated by, or under contract with, a public or governmental agency, or religious or other charitable organization or corporation, or is privately operated, and is used for the transportation of children to or from a school, school connected activity, day camp, summer day camp, summer residence camp, nursery school, child care center, preschool center or other similar places of education.
5. For purposes of the portion of the law requiring commercial motor vehicles with a GVW rating of 10,001 or more pounds, but less than 26,001 pounds, to be insured with a limit of $300,000 per accident, the law defines the term “commercial motor vehicle” to also include commercially registered vehicles with a GVW rating of 10,001 or more pounds, but less than 26,001 pounds.

Please let us know if you have any questions on this new law.

• Christian A. Cavallo
• Robert M. Hanlon Jr.
• Kevin P. Sullivan
• Robert M. Cook
• Or another member of our Global Insurance Services or Transportation teams.