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Read. Follow. Verify.New Jersey Bill Prohibits Auto Insurers From Restricting Full Payment of Policy Recovery Limits
Last action · January 13, 2026: Introduced, Referred to Assembly Financial Institutions and Insurance CommitteeSponsors: Carol Murphy and 2 others
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What This Bill Would Do
Assembly Bill 971 prohibits motor vehicle liability insurance policies from restricting recovery amounts for named insureds, listed drivers, or resident relatives below the policy's maximum limits for bodily injury, property damage, and uninsured or . The measure applies to automobile insurance policies initiated or renewed 180 days following enactment.
Insured drivers and their household members will be guaranteed access to the full coverage limits specified in their policies without internal policy restrictions, while insurers must prominently disclose any recovery limitations affecting third parties on the policy .
Who It Would Affect
Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.
named insureds
Policyholders cannot have their recovery amounts restricted below the maximum limits for bodily injury, property damage, and uninsured or underinsured motorist coverage.
authorized insurers
Insurers are prohibited from enforcing policy clauses that cap recovery below policy limits for covered household members and must update disclosure practices on declaration pages.
resident relatives
Household family members covered under a policy receive protections ensuring access to maximum policy recovery limits based on the vehicle involved in the loss.
Key Facts
You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.
Frequently Asked Questions
Who is protected from recovery restrictions under this bill?
What must insurers do if they restrict recovery amounts for other individuals?
When does this legislation take effect?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
Currently in committee. The next step in the legislative lifecycle is Floor Vote.
Procedural history
1 action- Jan 13, 2026HouseIntroducedIntroduced, Referred to Assembly Financial Institutions and Insurance Committee
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Elimination of Policy Recovery Restrictions
The bill prevents insurers from utilizing internal policy caps to lower payouts below stated maximum limits for household drivers and named insureds.
Connected Entities
Sources
njleg.state.nj.us
Analysis Score
0–100- Significance65How much this matters to a regular citizen
- Controversy30Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz25Current news / social attention level
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