SENATE COMMERCE COMMITTEE

STATEMENT TO

[First Reprint]

ASSEMBLY, No. 1963

STATE OF NEW JERSEY

DATED: OCTOBER 28, 1996

      The Senate Commerce Committee reports favorably Assembly Bill No. 1963 (1R).

      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 bill specifically provides that an insurer is not required to offer any of the coverages that make up the credit insurance combination for separate purchase.