ASSEMBLY, No. 1279
STATE OF NEW JERSEY
Introduced Pending Technical Review by Legislative Counsel
PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION
By Assemblywoman GILL and Assemblyman JONES
An Act allowing certain senior citizen insureds to designate third parties to receive certain notices.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. For purposes of this act:
"Commissioner" means the Commissioner of Insurance.
"Insurer" means:
a. Any corporation, association, partnership, reciprocal exchange, interinsurer, Lloyd's insurer, fraternal benefit society or other person engaged in the business of insurance pursuant to Subtitle 3 of Title 17 of the Revised Statutes or Subtitle 3 of Title 17B of the New Jersey Statutes;
b. Any medical service corporation operating pursuant to P.L.1940, c.74 (C.17:48A-1 et seq.);
c. Any hospital service corporation operating pursuant to P.L.1938, c.366 (C.17:48-1 et seq.);
d. Any health service corporation operating pursuant to P.L.1985, c.236 (C.17:48E-1 et seq.);
e. Any health maintenance organization established pursuant to the provisions of P.L.1973, c.337 (C.26:2J-1 et seq.);
f. Any insurance plan operating pursuant to P.L.1970, c.215 (C.17:29D-1); and
g. The New Jersey Insurance Underwriting Association operating pursuant to P.L.1968, c.129 (C.17:37A-1 et seq.).
"Policy of personal lines insurance" means any policy or contract of insurance issued or issued for delivery in this State for personal, family or household purposes, as determined by the commissioner, by an insurer on a risk located or resident in this State for which the premiums are paid directly to the insurer by the senior citizen insured.
"Senior citizen insured" means any named insured pursuant to a policy of personal lines insurance who is an individual and is at least 62 years of age.
2. Every insurer shall permit its senior citizen insureds to designate a third party to whom the insurer shall transmit a copy of notices of cancellation, nonrenewal and conditional renewal. The senior citizen insured shall notify the insurer that a third party has been so designated. Such notification shall be delivered to the insurer by certified mail, return receipt requested, and shall be effective not later than ten business days from the date of receipt by the insurer. The notification shall contain, in writing, an acceptance by the third party designee to receive copies of notices of cancellation, nonrenewal and conditional renewal from the insurer. Should the third party designee desire to terminate the status as a third party designee, the designee shall provide written notice to both the insurer and the senior citizen insured. Should the senior citizen insured desire to terminate the third party designation, the insured shall provide written notice to the insurer. The transmission to the third party designee of a copy of any notice of cancellation, nonrenewal or conditional renewal shall be in addition to the original document transmitted to the senior citizen insured and when a third party is so designated all such notices and copies shall be mailed in an envelope clearly marked on its face with the following: "IMPORTANT INSURANCE POLICY INFORMATION: OPEN IMMEDIATELY". The copy of the notice of cancellation, nonrenewal or conditional renewal transmitted to the third party shall be governed by the same law and policy provisions which govern the notice being transmitted to the senior citizen insured. Designation as a third party shall not constitute acceptance of any liability on the part of the third party for services provided to the senior citizen insured , nor on the part of the insurer. The insurer shall notify its senior citizen insureds annually in writing, except in cases in which the age of the senior citizen insured is unknown to the insurer, of the availability of the third party designee notice procedures and provide information on how the insured can commence this procedure, except that notice need not be provided once a senior citizen insured has made a designation. An insurer may provide this required annual notice to its senior citizen insureds in any manner that it determines.
3. This act shall take effect on the 120th day following enactment.
STATEMENT
This bill allows senior citizen insureds of policies of personal lines of insurance to designate a third party to whom the insurer must transmit a copy of notices of cancellation, nonrenewal and conditional renewal. The envelopes of such notices to the senior citizen insureds and third party designees must be clearly marked to read: "IMPORTANT INSURANCE POLICY INFORMATION: OPEN IMMEDIATELY."
A third party designee may terminate such a designation by written notice to both the insurer and the senior citizen insured. The senior citizen insured may terminate the third party designation by written notice to the insurer.
Insurers must notify their senior citizen insureds annually in writing of the availability of such third party notices, except in those cases when the age of the insured is unknown. An insurer may provide this annual notice in any manner it determines. Designation as a third party does not constitute acceptance of any liability on the part of the third party for services provided to the senior citizen insured, nor on the part of the insurer.
Senior citizen insureds under the bill are persons 62 years of age or older who are named insureds under insurance policies for personal, family or household purposes on which the premiums are paid directly to the insurer by the senior citizen insured. Examples of insurance policies referred to under the bill are automobile insurance policies, homeowners policies and individual life and health insurance policies.
Allows certain senior citizens to designate third parties to receive insurance cancellation and nonrenewal notices.