SENATE COMMERCE COMMITTEE

STATEMENT TO

[First Reprint]

ASSEMBLY, No. 810

with committee amendments

STATE OF NEW JERSEY

DATED: JUNE 3, 1996

      The Senate Commerce Committee reports favorably and with committee amendments Assembly Bill No. 810 (1R).

      This bill, as amended by the committee, 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 commissioner must promulgate regulations defining unusual hardship. The bill also provides that applicable policies of solvent insurers must be exhausted first before either fund is responsible for the covered claim.

      As amended by the committee, this bill is identical to Senate Bill No. 1197 (1R).