Prohibits use of gap in automobile insurance coverage as rating factor in automobile insurance underwriting under certain circumstances.

This bill prohibits New Jersey automobile insurers from using gaps in an applicant's previous insurance coverage (known as a "lapse") as a factor to increase premiums or deny coverage. It amends existing law to specifically ban underwriting rules that assign higher risk ratings based solely on any period without insurance, regardless of how long the gap lasted. The law directly affects auto insurance applicants who have had a gap in coverage, preventing insurers from penalizing them for this history. Insurers must adjust their underwriting practices to comply with this new prohibition, ensuring coverage gaps cannot be used as a rating factor.