Without any guarantee of rate cuts, it imposes tougher restrictions on lawsuits.

One of the most significant provisions is a higher verbal threshold on pain and suffering suits.

Under the new law, suits for non-economic damages will be permitted only for permanent injuries, death, dismemberment, disfigurement, displaced fractures or loss of a fetus. It does not limit the profits of insurance companies.

In addition, the statute makes important changes in the medical claim arbitration system. Under current law, when your insurance company fails to pay medical bills, you could request arbitration with the American Arbitration Association.

Unfortunately, skilled lawyers serving as arbitrators will be replaced by ful l-time professional arbitrators, who will issue written opinions and seek advice from a physicians' peer-review panel.

The new law takes effect after regulations are adopted, and will allow drivers to buy a low-cost, bare-bones policy with only $15,000 in basic PIP coverage and $5,000 in liability coverage. P.L. 1998 c. 21 (The Automobile Insurance Cost Reduction Act) (signed May 19, 1998). Despite opposition from consumer groups, motorists again are getting a bad deal.

We recommend no one select the ridiculous bare-bones policy. Information Source: New Jersey Trial Lawcast