SENATE COMMERCE COMMITTEE

 

STATEMENT TO

 

SENATE JOINT RESOLUTION No. 51

 

STATE OF NEW JERSEY

 

DATED: NOVEMBER 24, 1997

 

      The Senate Commerce Committee reports favorably Senate Joint Resolution No. 51.

      This joint resolution creates the Task Force on the Availability of Homeowners Insurance in the Coastal Region to study the availability of personal property insurance in the coastal region of the State. The task force will consist of 15 members, including four legislators representing coastal constituencies, the Commissioner of Banking and Insurance or her designee, the Commissioner of Community Affairs or his designee, and nine public members appointed by the Governor with the advice and consent of the Senate. The public members include: two representatives of insurers writing homeowners insurance in this State; two representatives of real estate brokers doing business in the coastal region of the State; two representatives of licensed insurance producers doing business in the coastal region; two homeowners with primary or secondary homes located in the coastal region; and one representative of mortgage bankers doing business in the coastal region.

      Among its duties and responsibilities, the task force will review the current voluntary insurance program, the Windstorm Market Assistance Program, to evaluate its effectiveness, as well as the coastal area property insurance problems of other states and the success of their solutions; review and make recommendations to create incentives to encourage insurers to increase their voluntary writing of homeowners risks in the coastal areas; review and evaluate the extent to which there has been growth in the coastal areas, the degree to which local building codes are enforced effectively and how such growth and building code enforcement may affect insurance losses in the coastal areas; and review and evaluate incentives that may be offered to communities and homeowners to mitigate against potential losses that may occur in the event of a windstorm. The task force is to report its findings and recommendations to the Governor and Legislature within 180 days of its organization.