ASSEMBLY SENIOR ISSUES, TOURISM AND GAMING COMMITTEE

STATEMENT TO

ASSEMBLY, No. 1279

STATE OF NEW JERSEY

DATED: JUNE 3, 1996

      The Assembly Senior Issues, Tourism and Gaming Committee reports favorably Assembly, No. 1279.

      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.

      Under the bill, senior citizen insureds are defined as 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.

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