SENATE SUBSTITUTE FOR

SENATE, Nos. 1374, 1379 and ASSEMBLY, No. 1279

STATE OF NEW JERSEY

ADOPTED DECEMBER 16, 1996

Sponsored by Senators INVERSO, MATHEUSSEN, Scott, Cafiero, Assemblywoman Gill and Assemblyman Jones

An Act allowing certain senior citizens to designate third parties to receive certain notices and supplementing chapter 29 of Title 17, chapter 3 of Title 48 and chapter 4 of Title 54 of the Revised Statutes.

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

      1. For the purposes of sections 1 and 2 of this act:

      "Commissioner" means the Commissioner of Banking and Insurance.

      "Insurer" means:

      a. A corporation, association, partnership, reciprocal exchange, interinsurer, Lloyd's insurer, fraternal benefit society or other person engaged in the business of insurance pursuant to Subtitle 3 of Title 17 of the Revised Statutes or Subtitle 3 of Title 17B of the New Jersey Statutes;

      b. A medical service corporation operating pursuant to P.L.1940, c.74 (C.17:48A-1 et seq.);

      c. A hospital service corporation operating pursuant to P.L.1938, c.366 (C.17:48-1 et seq.);

      d. A health service corporation operating pursuant to P.L.1985, c.236 (C.17:48E-1 et seq.);

      e. A health maintenance organization authorized to operate in this State pursuant to P.L.1973, c.337 (C.26:2J-1 et seq.);

      f. An insurance plan operating pursuant to P.L.1970, c.215 (C.17:29D-1); and

      g. The New Jersey Insurance Underwriting Association operating pursuant to P.L.1968, c.129 (C.17:37A-1 et seq.).

      "Policy of personal lines insurance" means any policy or contract of insurance issued or issued for delivery in this State for personal, family or household purposes, as determined by the commissioner, by an insurer on a risk located or resident in this State for which the premiums are paid directly to the insurer by the senior citizen insured.

      "Senior citizen" means a person who is at least 62 years of age.      "Senior citizen insured" means a named insured pursuant to a policy of personal lines insurance who is a senior citizen.

      2. Every insurer shall permit its senior citizen insureds to designate a third party to whom the insurer shall transmit a copy of notices of cancellation, nonrenewal and conditional renewal. The senior citizen insured shall notify the insurer that a third party has been so designated. Such notification shall be delivered to the insurer by certified mail, return receipt requested, and shall be effective not later than 10 business days from the date of receipt by the insurer. The notification shall contain, in writing, an acceptance by the third party designee to receive copies of notices of cancellation, nonrenewal and conditional renewal from the insurer. If the third party designee desires to terminate the status as a third party designee, the designee shall provide written notice to both the insurer and the senior citizen insured. If the senior citizen insured desires to terminate the third party designation, the insured shall provide written notice to the insurer.

      The transmission to the third party designee of a copy of any notice of cancellation, nonrenewal or conditional renewal shall be in addition to the original document transmitted to the senior citizen insured and when a third party is so designated all such notices and copies shall be mailed in an envelope clearly marked on its face with the following: "IMPORTANT INSURANCE POLICY INFORMATION: OPEN IMMEDIATELY". The copy of the notice of cancellation, nonrenewal or conditional renewal transmitted to the third party shall be governed by the same law and policy provisions which govern the notice being transmitted to the senior citizen insured.

      Designation as a third party shall not constitute acceptance of any liability on the part of the third party for services provided to the senior citizen insured, or on the part of the insurer.

      The insurer shall notify its senior citizen insureds annually in writing, except in cases in which the age of the senior citizen insured is unknown to the insurer, of the availability of the third party designee notice procedures and provide information on how the insured can commence this procedure, except that notice need not be provided once a senior citizen insured has made a designation. An insurer may provide this required annual notice to its senior citizen insureds in any manner that the insurer determines.

      3. Every public utility shall permit a senior citizen who receives service to designate a third party to whom the public utility shall transmit a copy of any notice of delinquent payment or termination of service. The senior citizen shall notify the public utility that a third party has been so designated. Such notification shall be authorized on an appropriate form for recording this request and consent, and shall be effective not later than 10 business days from the date of receipt by the public utility. The notification shall contain, in writing, an acceptance by the third party designee to receive copies of any notices of delinquent payment or termination of service of the senior citizen's utilities.

      The transmission to the third party designee of a copy of the delinquent payment notice or termination of service notice shall be in addition to the original document transmitted to the senior citizen. The copy of the delinquent payment notice or termination of service notice transmitted to the third party shall be governed by the same law and policy provisions which govern the notice being transmitted to the senior citizen.

      Designation as a third party shall not constitute acceptance of any liability on the part of the third party for payment of the public utility bill, or on the part of the public utility.

      The public utility shall notify its senior citizen customers annually in writing, except in cases in which the age of the senior citizen is unknown to the public utility, of the availability of the third party designee notice procedures and provide information on how the senior citizen can commence this procedure, except that notice need not be provided once a senior citizen has made a designation. A public utility may provide this required annual notice to its senior citizen customers in any manner that the public utility determines.

      For the purposes of this section, "senior citizen" means a person who is at least 62 years of age.

      4. Every municipal tax collector shall permit a senior citizen residential property taxpayer to designate a third party to whom the municipal tax collector shall transmit a copy of the annual property tax bill and any notices of delinquent payment. The senior citizen residential property taxpayer shall notify the municipal tax collector that a third party has been so designated. Such notification shall be authorized on an appropriate form for recording this request and consent, and shall be effective not later than 10 business days from the date of receipt by the municipal tax collector. The notification shall contain, in writing, an acceptance by the third party designee to receive copies of the senior citizen residential property taxpayer's annual tax bill and any notices of delinquent payment of the senior citizen's residential property tax. If the third party designee desires to terminate the status as a third party designee, the designee shall provide written notice to both the municipal tax collector and the senior citizen residential property taxpayer. If the senior citizen residential property taxpayer desires to terminate the third party designation, the senior citizen residential property taxpayer shall provide written notice to the municipal tax collector.

      The transmission to the third party designee of a copy of the municipal tax bill or delinquency tax notice shall be in addition to the original document transmitted to the senior citizen residential property taxpayer. The copy of the residential property tax bill or delinquency tax notice transmitted to the third party shall be labeled as a copy and shall be governed by the same law and policy provisions which govern the notice being transmitted to the senior citizen residential property taxpayer.

      Designation as a third party shall not constitute acceptance of any liability on the part of the third party for payment of the residential property tax bill, nor on the part of the municipal tax collector.

      The municipal tax collector shall notify annually in writing at least every residential property taxpayer, as identified on the municipal tax assessor's list, of the availability of the third party designee notice procedures and provide information on how a senior citizen residential property taxpayer can commence this procedure. A municipal tax collector may provide this required annual notice in any manner that the tax collector determines.

      For the purposes of this section,"senior citizen residential property taxpayer" means a person who is at least 62 years of age and who is legally domiciled within the State of New Jersey for a period of one year immediately preceding October 1 of the pretax year and who is the owner of a residential property within this State and who resides in that property. Mere seasonal or temporary residence within the State, of whatever duration, shall not constitute domicile within the State for the purposes of this act. Absence from this State for a period of 12 months shall be prima facie evidence of abandonment of domicile in this State. The burden of establishing legal domicile within the State shall be upon the claimant.

      5. This act shall take effect on the 120th day following enactment.

STATEMENT

      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 bill also allows senior citizens to designate a third party to whom public utilities must transmit a copy of any notices of delinquent payment and termination of service. The bill additionally allows senior citizen residential property taxpayers to designate a third party to whom the municipal tax collector must transmit a copy of the property tax bill and notices of delinquent payment.

      Designation as a third party does not constitute acceptance of any liability on the part of the third party for services provided to, or the tax liability of, the senior citizen, or on the part of the insurer, public utility or municipal tax collector, as the case may be.

Allows senior citizens to designate third parties to receive certain insurance, public utility and residential property tax notices.