Senate Commerce Committee Statement to Assembly Committee Substitute for Assembly, No. 4805 (February 11, 2021)

Summary

Senate Commerce Committee Statement to the Assembly Committee Substitute for Assembly Bill No. 4805, State of New Jersey, dated February 11, 2021. The committee substitute requires the Department of Banking and Insurance to publish on its internet website, on or before the 90th day after the date of enactment, a one page summary of common insurance clauses concerning coverage for the loss of use and occupancy of a commercial property and business interruption. Under the bill, an authorized insurer is to provide the summary to potential purchasers and renewing policyholders. Its provisions are to expire on the 30th day after the effective date of any substantially similar federal legislation or regulation. As amended, the bill is identical to the Senate Committee Substitute for Senate Bill No. 3169.

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     SENATE COMMERCE COMMITTEE

                     STATEMENT TO

ASSEMBLY COMMITTEE SUBSTITUTE FOR
                ASSEMBLY, No. 4805
                    with committee amendments



 STATE OF NEW JERSEY
                   DATED: FEBRUARY 11, 2021

    The Senate Commerce Committee reports favorably and with
committee amendments the Assembly Committee Substitute for
Assembly Bill No. 4805.
    This committee substitute requires the Department of Banking and
Insurance to publish on its internet website, on or before the 90th day
after the date of enactment of the bill, a one page summary of common
insurance clauses concerning coverage for the loss of use and
occupancy of a commercial property and business interruption that
may be used in a commercial insurance policy. The summary is to be
developed through a public stakeholder process, be written in easily
understandable language, and include certain information, statements,
and disclaimers.
    Under the bill, an authorized insurer is to provide the summary to
any potential purchaser of, or any policyholder seeking renewal of, a
policy that provides coverage for the loss of use and occupancy of a
commercial property and business interruption in this State with the
application for the policy or renewal.
    The bill provides that an authorized insurer that has issued a policy
insuring against loss of use and occupancy of a commercial property
and business interruption in the State that is in effect on the date the
summary is published is to deliver the summary to each policyholder
by written or electronic means before 90 days after the date the
summary is published.
    The provisions of the bill are to expire on the 30th day after the
effective date of any federal legislation or regulation that is determined
by the Department of Banking and Insurance to be substantially
similar to the provisions of the bill.
    As amended and reported by the committee, this bill is identical to
the Senate Committee Substitute for Senate Bill No. 3169, as
reported by the committee.

COMMITTEE AMENDMENTS:
  The committee amended the bill to:
  (1) limit the provisions of the bill to authorized insurers; and
                                  2

    (2) provide that the bill is to expire on the 30th day after the
effective date of any federal legislation or regulation that is determined
by the Department of Banking and Insurance to be substantially
similar to the provisions of this act.


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