ASSEMBLY INSURANCE COMMITTEE

STATEMENT TO

ASSEMBLY, No. 1963

with committee amendments

STATE OF NEW JERSEY

DATED: JUNE 3, 1996

      The Assembly Insurance Committee reports favorably and with committee amendments Assembly Bill No. 1963.

      As amended by the committee, this bill allows credit life insurance, credit health insurance, credit involuntary unemployment insurance and credit personal property insurance to be offered in any combination to a debtor with at least a five percent discount. The purchase of such combination must be voluntary on the part of the debtor. In addition, when involuntary unemployment insurance coverage is purchased as part of the combination and the insured informs the insurer that he is ineligible for benefits under the coverage or a claim is denied because he is ineligible for the benefits under that coverage, the insurer must promptly refund the portion of the premium of that coverage for the period of ineligibility.

      The committee amended the bill to provide that an insurer offering combined credit insurance products could offer more than a five percent discount at its discretion and to clarify that an insurer is not required to offer for separate purchase any of the coverages that make up the combined credit insurance.