Sponsored by:
Assemblyman ROY FREIMAN
District 16 (Hunterdon, Mercer, Middlesex and Somerset)
Assemblyman GARY S. SCHAER
District 36 (Bergen and Passaic)
Assemblyman RAJ MUKHERJI
District 33 (Hudson)
Assemblyman VINCENT MAZZEO
District 2 (Atlantic)
Co-Sponsored by:
Assemblyman Dancer, Assemblywomen Lopez, Timberlake, Assemblyman McKeon and Assemblywoman DiMaso
SYNOPSIS
Authorizes insurers issuing business interruption insurance to offer rider for global virus transmission and pandemic coverage.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning business interruption insurance and supplementing Title 17 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. An insurer which issues policies insuring against loss or damage to property, which include the loss of use and occupancy and business interruption in this State, may offer to its insureds and prospective insureds a rider to such an insurance policy which includes, as a covered peril under that policy, coverage for global virus transmission or pandemic, or both.
2. The Commissioner of Banking and Insurance shall, on an expedited basis, review and approve, as appropriate, any insurance policy rider submitted by an insurer and designed to provide the coverage offered pursuant to section 1 of this act.
3. This act shall take effect immediately and apply to policies of insurance issued on or after the date that the Commissioner of Banking and Insurance approves a rider offered pursuant to section 1 of this act.
STATEMENT
This bill authorizes insurers which issue policies insuring against loss or damage to property which include the loss of use and occupancy and business interruption in this State, to offer to their insureds and prospective insureds a rider to such an insurance policy which includes, as a covered peril under that policy, coverage for global virus transmission or pandemic, or both.
Industry sources have indicated that the Insurance Services Office, ISO, has developed such a rider, but to date, no states have yet approved the form.
The bill also requires the Commissioner of Banking and Insurance to review and approve, as appropriate, any insurance policy rider submitted by an insurer and designed to provide the coverage offered pursuant to the bill on an expedited basis.