Bill Text: NJ A3731 | 2012-2013 | Regular Session | Amended

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Bill Title: "Certificates of Insurance Act."

Spectrum: Slight Partisan Bill (Democrat 4-2)

Status: (Introduced - Dead) 2013-09-09 - Assembly Floor Amendment Passed (Schaer) [A3731 Detail]

Download: New_Jersey-2012-A3731-Amended.html

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[First Reprint]

ASSEMBLY, No. 3731

STATE OF NEW JERSEY

215th LEGISLATURE

INTRODUCED FEBRUARY 7, 2013

 

 

Sponsored by:

Assemblyman  GARY S. SCHAER

District 36 (Bergen and Passaic)

Assemblyman  TIMOTHY J. EUSTACE

District 38 (Bergen and Passaic)

Assemblyman  SEAN T. KEAN

District 30 (Monmouth and Ocean)

Assemblywoman  GABRIELA M. MOSQUERA

District 4 (Camden and Gloucester)

Assemblyman  JACK M. CIATTARELLI

District 16 (Hunterdon, Mercer, Middlesex and Somerset)

 

Co-Sponsored by:

Assemblyman McKeon

 

 

 

 

SYNOPSIS

     "Certificates of Insurance Act."

 

CURRENT VERSION OF TEXT

     As amended by the General Assembly on September 9, 2013.

 

An Act concerning certificates of insurance and supplementing Title 17 of the Revised Statutes.

 

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

 

    1.    This act shall be known and may be cited as the "Certificates of Insurance Act."

 

     2.    As used in this act:

     "Certificate of insurance" means a document or instrument, regardless of how titled or described, that is prepared or issued by an insurer or insurance producer as evidence of property or casualty insurance coverage. The term shall not include a policy of insurance, insurance binder, policy endorsement, or automobile insurance identification or information card.

     "Commissioner" means the Commissioner of Banking and Insurance.

     "Insurance producer" means a person required to be licensed pursuant to the "New Jersey Insurance Producer Licensing Act of 2001," P.L.2001, c.210 (C.17:22A-26 et seq.).

     "Insurer" means an organization that issues property or casualty insurance.

 

     3.    a. Except as provided in ¹[subsection] subsections¹ b. ¹and c.¹ of this section, a person shall not prepare, issue, request, or require the issuance of a certificate of insurance on property, operations, or risks located in this State unless:

     (1)   the certificate of insurance form has been filed with ¹[and approved by the commissioner] the Department of Banking and Insurance by or on behalf of an insurer or commercial lender¹ ; or

     (2)   the specific content and wording of the certificate of insurance form are established by any federal law or regulation or any law or regulation of this State.

     b.    Notwithstanding the provisions of subsection a. of this section, the current edition of standard certificate of insurance forms promulgated by the following organizations are ¹[approved and] not required to be filed by individual insurers and are¹ authorized for use in this State on and after the date that the forms are filed with the ¹[commissioner] department¹ :

     (1)   the Association for Cooperative Operations Research and Development (ACORD);

     (2)   the American Association of Insurance Services (AAIS); ¹and¹

     (3)   the Insurance Services Office (ISO).

     c.    ¹Notwithstanding the provisions of subsection a. of this section, the current edition of standard evidence of insurance commercial property form promulgated by the Mortgage Bankers Association is not required to be filed by individual lenders and is authorized for use in this State for commercial real property, so long as the policy has not been delivered to the lender.

     d.¹   The commissioner shall disapprove the use of a certificate of insurance form if the form is:

     (1)   unfair, misleading, or deceptive, or violates public policy; or

     (2)   in violation of the provisions of any law, including any regulation promulgated by the commissioner.

 

     4.    A certificate of insurance shall not be considered to be a policy of insurance and shall not have the effect of amending, extending, or altering the coverage provided for in the referenced  policy of insurance. A certificate of insurance shall not confer new or additional rights to any person beyond those provided for in the referenced policy of insurance.

 

     5.    a.  A person shall not:

     (1)   Alter or modify a certificate of insurance form filed with the commissioner;

     (2)   Prepare, issue, request, or require the issuance of a certificate of insurance that contains any false or misleading information concerning the referenced policy of insurance; or

     (3)   Prepare, issue, request, or require the issuance of a certificate of insurance that purports to alter, amend, or extend the coverage provided by the referenced policy of insurance.

     b.    A certificate of insurance shall not warrant that the policy of insurance referenced in the certificate complies with the insurance or indemnification requirements of a contract. The inclusion of a contract number or description within a certificate of insurance shall not be interpreted as providing such a warranty.

 

     6.    A person shall not be entitled to a notice of a cancellation, a nonrenewal, or a material change, or any similar notice concerning a policy of insurance, unless the person has a right to that notice under the terms of the policy of insurance or an endorsement to the policy, or pursuant to any applicable State law. The terms and conditions of the notice shall be governed by the policy of insurance or endorsement and shall not be altered by a certificate of insurance.

 

     7.    a. The provisions of this act shall apply to all certificates of insurance issued in connection with property, operations, or risks located in this State, regardless of where the policyholder, insurer, insurance producer, or person requesting or requiring the issuance of a certificate of insurance is located.

     b.    A certificate of insurance or any other document or correspondence prepared, issued, requested, or required in violation of any provision of this act shall be null and void.

 

     8.    a. The commissioner shall have the authority to examine and investigate the activities of any person that the commissioner reasonably believes has been or is engaged in an act or practice prohibited by this act.

     b.    The commissioner shall have the authority to enforce the provisions of this act, including the authority to issue orders to cease and desist and impose other sanctions as provided in the "New Jersey Insurance Producer Licensing Act of 2001," P.L.2001, c. 210 (C.17:22A-26 et seq.), or in P.L.1947, c.379 (C.17:29B-1 et seq.), as the commissioner determines to be applicable.

     c.    The commissioner shall adopt rules and regulations, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), necessary to implement the provisions of this act.

 

     9.    This act shall take effect on the 90th day next following enactment.