CHAPTER 154

An Act concerning the special purpose apportionment of insurers and amending and supplementing P.L.1995, c.156.

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

    1. Section 13 of P.L.1995, c.156 (C.17:1C-31) is amended to read as follows:

C.17:1C-31 Permitted increase in amount assessable.

    13. The total amount assessable to companies in any fiscal year for all special purpose assessments made pursuant to applicable law as of the effective date of this act, including the special purpose apportionment established by this act, shall not increase, as a percentage, more than the percentage increase in the combined net written premiums received, as defined in subsection b. of section 2 of this act, by all companies for the previous year, except that, with respect to fiscal year 1998 and each fiscal year thereafter, the total amount of all direct and indirect expenditures incurred by the Division of Insurance Fraud Prevention in connection with the appointment of additional insurance fraud investigators pursuant to the Special Purpose appropriation in P.L.1997, c.131, may be included in the special purpose apportionment, notwithstanding any limitation on the total amount assessable to companies under this section.

C.17:1C-20.1 Distribution of special purpose apportionment.

    2. Notwithstanding the provisions of any law to the contrary, the Commissioner of Banking and Insurance shall take that action necessary to ensure that policyholders of the companies paying the special purpose apportionment pursuant to P.L.1995, c.156 (C.17:1C-19 et seq.) shall not pay for that portion of the special purpose apportionment attributable to the appointment of additional insurance fraud investigators as provided in section 13 of P.L.1995, c.156 (C.17:1C-31).

    3. This act shall take effect on July 1, 1997.

    Approved July 2, 1997.