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

Summary

A Senate Commerce Committee statement to the Assembly Committee Substitute for Assembly, No. 4805, State of New Jersey, dated February 11, 2021, reporting it favorably with committee amendments. The Department of Banking and Insurance would post a one page plain-language summary of commercial policy clauses covering loss of use and occupancy and business interruption, and authorized insurers would hand it to buyers and policyholders. The committee amendments limit the bill to authorized insurers and make it expire on the 30th day after any substantially similar federal legislation or regulation takes effect. As amended, it 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) 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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