Senate Commerce Committee Statement to Senate Committee Substitute, No. 3169 (February 11, 2021)

Summary

A Senate Commerce Committee statement to the Senate Committee Substitute for Senate Bill No. 3169, State of New Jersey, dated February 11, 2021, reporting the substitute favorably. The substitute requires the Department of Banking and Insurance to publish on its website, on or before the 90th day after enactment, a one page summary of common insurance clauses on loss of use and occupancy of a commercial property and business interruption. Authorized insurers must give the summary to potential purchasers and renewing policyholders, and deliver it to existing policyholders within 90 days after it is published. The provisions expire on the 30th day after the effective date of substantially similar federal legislation or regulation; the bill is identical to the Assembly Committee Substitute for Assembly Bill No. 4805.

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SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE
COMMITTEE SUBSTITUTE FOR

SENATE, No.
3169

STATE
OF NEW JERSEY

DATED: FEBRUARY
11, 2021

The
Senate Commerce Committee reports favorably the Senate Committee Substitute for
Senate Bill No. 3169.

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 reported by the committee, this bill is identical
to the Assembly Committee Substitute for Assembly Bill No. 4805, as amended and
reported by the committee.

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