ASSEMBLY, No. 754

STATE OF NEW JERSEY

Introduced Pending Technical Review by Legislative Counsel

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Assemblymen SULIGA and PASCRELL

An Act concerning certain life insurance policy statements and forms and supplementing P.L.1979, c.167 (C.17B:17-17 et seq.).

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

    1. a. The text of a life insurance policy statement, notice or form which is required to be signed by a person who purchases policies, contracts and certificates of life insurance, whether prepared by an insurer or the Department of Insurance, delivered or issued for delivery in this State shall be written on a sixth grade reading level in everyday, conversational language with a personal style, and printed in 10 point bold type.

    b. The Commissioner of Insurance shall determine that each statement, notice or form, whether prepared by an insurer or the department, meets the requirements of subsection a. of this section.

    2. The commissioner shall promulgate regulations, in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), necessary to effectuate the provisions of this act.

    3. This act shall take effect 60 days after enactment and shall apply to any statement, notice or form required to be signed on or after that date.

STATEMENT

    This bill provides that statements, notices or forms required to be signed by a person in connection with the purchase of policies, contracts and certificates of life insurance, whether prepared by an insurer or the Department of Insurance, shall be written on a sixth grade reading level in everyday, conversational language and printed in 10 point bold type.

    The Commissioner of Insurance shall determine that each statement, notice or form meets the readability requirements specified in the bill in order to ensure that these materials will be easier to read and be understood by persons purchasing life insurance.

    The bill takes effect 60 days after enactment and would apply to any statement, notice or form required to be signed on or after that date.

Requires certain life insurance policy forms to be written on 6th grade reading level.