Sponsored by:
Senator NELLIE POU
District 35 (Bergen and Passaic)
Senator VIN GOPAL
District 11 (Monmouth)
SYNOPSIS
Requires certain insurers to disclose whether business interruption insurance policy provides 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 shall disclose, in a form and manner prescribed by the Commissioner of Banking and Insurance, to any potential purchaser of or any policyholder seeking renewal of a policy insuring against loss or damage to property that includes the loss of use and occupancy and business interruption in this State whether the policy provides coverage for global virus transmission or pandemic coverage.
2. An insurer that has issued a policy insuring against loss or damage to property that includes the loss of use and occupancy and business interruption in this State that is in effect as of the date of enactment of this act, shall notify the policyholder within 30 days of the date of enactment of this act, through a written statement delivered by mail or electronic means, of whether the policy provides coverage for global virus transmission or pandemic coverage.
3. Section 1 of this act shall take effect on the 30th day next following the date of enactment, except that the commissioner shall establish the form and manner for disclosure prior to that date. Section 2 shall take effect immediately.
STATEMENT
This bill requires insurers that issue policies of business interruption in New Jersey to disclose to any potential purchaser or policyholder seeking renewal whether the policy provides coverage for global virus transmission or pandemic coverage. The disclosure to potential purchasers of business interruption insurance shall be in a form and manner prescribed by the Commissioner of Banking and Insurance.
The bill also requires insurers issuing business interruption insurance in New Jersey to notify the policyholder, within 30 days of the date of enactment of the bill, of whether the policy provides coverage for global virus transmission or pandemic coverage. The notification of policyholders of business interruption insurance is to be in a written statement delivered by mail or electronic means.