ASSEMBLY INSURANCE COMMITTEE

STATEMENT TO

ASSEMBLY, No. 810

with committee amendments

STATE OF NEW JERSEY

DATED: MARCH 25, 1996

      The Assembly Insurance Committee reports favorably and with committee amendments, Assembly Bill No. 810.

      This bill concerns claims filed against an insolvent insurer with the New Jersey Property-Liability Insurance Guaranty Association Fund and the New Jersey Surplus Lines Insurance Guaranty Fund. The bill provides that neither fund is responsible for paying a claim filed after the final date set by the court for the filing of claims against the insolvent insurer, except in cases of unusual hardship approved by the Commissioner of Insurance. The bill also provides that applicable policies of solvent insurers must be exhausted first before either fund is responsible for the covered claim.

      The committee amended the bill to provide that the Commissioner of Insurance shall define, through regulation, "unusual hardship" to provide protection for claimants who have losses.

      This bill was pre-filed for introduction in the 1996 session pending technical review. As reported, the bill includes the changes required by technical review which has been performed.