Bill Text: NJ S1477 | 2024-2025 | Regular Session | Introduced
Bill Title: Provides that contracts between subscribers and attorney in fact are not a related party transaction.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-01-09 - Introduced in the Senate, Referred to Senate Commerce Committee [S1477 Detail]
Download: New_Jersey-2024-S1477-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Senator JOSEPH A. LAGANA
District 38 (Bergen)
SYNOPSIS
Provides that contracts between subscribers and attorney in fact are not a related party transaction.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning reciprocal insurance and interinsurance contracts and amending P.L.1945, c.161.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.1945, c.161 (C.17:50-1) is amended to read as follows:
1. Individuals, partnerships, trustees and all corporations of this State, herein designated "subscribers," are hereby authorized to exchange reciprocal or interinsurance contracts with each other and with individuals, partnerships, trustees and corporations of other States, districts, provinces and countries, for any or all of the kinds of business for which a company may be formed or authorized to transact under the provisions of chapter seventeen of Title 17 of the Revised Statutes, except life insurance.
Such contracts and the exchange thereof and such subscribers, their attorneys in fact and representatives shall be regulated by this act, and by no other statute of this State relating to insurance, including, but not limited to, R.S.17:27-1 et seq., except as herein otherwise provided. Such contracts between subscribers and the attorney in fact and any fees charged pursuant to those contracts or arising out of those contracts shall not be construed to be a related party transaction.
(cf: P.L.1945, c.161, s.1)
2. This act shall take effect immediately.
STATEMENT
This bill amends the law concerning reciprocal insurance and interinsurance contracts. The bill provides that contracts between subscribers and the attorney in fact, and any fees charged pursuant to those contracts or arising out of those contracts, are not to be considered a related party transaction.
