ASSEMBLY, No. 2695

STATE OF NEW JERSEY

INTRODUCED FEBRUARY 3, 1997

By Assemblymen COHEN and SULIGA

An Act concerning homeowners insurance.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. No insurer authorized to do business in this State shall utilize underwriting guidelines which decline, cancel or non-renew a homeowners insurance policy because of one or more claims or losses due to weather-related damage or a third-party criminal act.

    2. This act shall take effect within 90 days after enactment.

STATEMENT

    This bill provides that no insurer authorized to do business in this State shall utilize underwriting guidelines which decline, cancel or non-renew a homeowners insurance policy because of one or more claims or losses due to weather-related damage or a third-party criminal act. Currently, insurers may utilize underwriting guidelines premised on adverse loss experience in determining whether to write or renew a homeowners insurance policy. Insurers have canceled or non-renewed homeowners insurance policies based upon claims related to weather damage or third party criminal acts, all of which are no fault of the homeowner, and not within the homeowner's control. This bill would prohibit such practices.