[First Reprint]

SENATE, No. 2354







Sponsored by:


District 14 (Mercer and Middlesex)


District 24 (Morris, Sussex and Warren)


Co-Sponsored by:

Senators Turner, Brown, Cardinale, O'Scanlon, Pennacchio and Singleton






     Prohibits cancellation or nonrenewal of certain insurance policies and insurance premium finance agreements for a period of at least 60 days under certain circumstances after declaration of public health emergency, or state of emergency, or both.



     As amended by the General Assembly on July 30, 2020.


An Act concerning cancellation of 1certain1 insurance policies 1and insurance premium finance agreements1 during a public health emergency or state of emergency and supplementing Title 17 of the Revised Statutes.


     Be It Enacted by the Senate and General Assembly of the State of New Jersey:


     1.    Notwithstanding the provisions of any other law, rule or regulation to the contrary, upon the declaration by the Governor, of a public health emergency, pursuant to the “Emergency Health Powers Act,” P.L.2005, c.222 (C.26:13-1 et seq.), or a state of emergency, pursuant to P.L.1942, c.251 (C.App.A.9-33 et seq.), or both, and upon a further determination by the Commissioner of Banking and Insurance, after consultation with the Governor, that the emergency or emergencies shall be of such duration and severity as to require certain actions with respect to policies of insurance, then the Commissioner of Banking and Insurance shall issue a bulletin requiring that for a period of at least 60 days, no policy of insurance issued 1[to an insured]1 in this State and subject to regulation pursuant to Title 17 of the Revised Statutes, or Title 17B of the New Jersey Statutes shall be cancelled or not renewed for nonpayment of premium 1and no insurance premium finance agreement, as defined in section 2 of P.L.1968, c.221 (C.17:16D-2), shall be terminated and no insurance contract or contracts listed in the insurance premium finance agreement shall be cancelled by the insurance premium finance company.  The provisions of this section shall apply only to policies and contracts of insurance if the policyholder is an individual or a business with 50 or fewer employees1 .  The commissioner shall direct insurers 1, insurance premium finance companies, and other entities regulated by the Department of Banking and Insurance1 to take appropriate actions to protect policyholders impacted by COVID-19 1only if the policyholder is an individual or a business with 50 or fewer employees1 , which actions may include but shall not 1be1 limited to extending grace periods beyond the minimum grace periods required by this section, waiving late fees and penalties, 1waiving finance charges, prohibiting late payment reporting to credit rating agencies,1 relaxing or extending due dates for premium payments and policy based loan payments or allowing extended payment plans, extending timeframes to complete property inspections or undergo medical examinations, and taking any and all similar actions so as to avoid the cancellation or nonrenewal of policies.  1During the minimum grace period provided by this section, coverage shall remain in force, claims shall not be pended or held and shall be paid by the insurer without regard to prior nonpayment of premium by the policyholder, and the cost of the claims shall not be recouped by the insurer in any way from any party during or after a minimum grace period.1


     2.    This act shall take effect immediately and shall be retroactive to March 1, 2020, and shall apply to any policy of insurance 1or insurance premium finance agreement held by an individual or a business with 50 or fewer employees1 in effect in this State on that date, and to any policy of insurance delivered, issued, executed or renewed in this State, or approved for issuance or renewal in the State by the Commissioner of Banking and Insurance, on or after that date.