Bill
Bill > A2179
NJ A2179
Requires 90 days' notice of cancellation or nonrenewal of stop loss insurance for small employer health benefits plans.
summary
Introduced
01/14/2020
01/14/2020
In Committee
01/14/2020
01/14/2020
Crossed Over
Passed
Dead
01/11/2022
01/11/2022
Introduced Session
2020-2021 Regular Session
Bill Summary
This bill requires that, with respect to a policy of stop loss or excess risk insurance issued relative to a small employer health benefits plan, the insurer shall provide not less than 90 days written notice of cancellation or nonrenewal of the policy to the plan sponsor, in a form to be determined by the Commissioner of Banking and Insurance. "Stop loss" or "excess risk insurance," for the purposes of small employer health benefits plans regulated by the Department of Banking and Insurance, means an insurance policy designed to reimburse a self-funded arrangement of one or more small employers for catastrophic, excess or unexpected expenses, wherein neither the employees nor other individuals are third party beneficiaries under the insurance policy. In order to be considered stop loss or excess risk insurance for the purposes of P.L.1992, c.162 (C.17B:27A-17 et seq.), the policy shall establish a per person attachment point or retention or aggregate attachment point or retention, or both, which meet the following requirements: a. If the policy establishes a per person attachment point or retention, that specific attachment point or retention shall not be less than $20,000 per covered person per plan year; and b. If the policy establishes an aggregate attachment point or retention, that aggregate attachment point or retention shall not be less than 125% of expected claims per plan year.
AI Summary
This bill requires that insurers providing stop loss or excess risk insurance to small employer health benefits plans in New Jersey provide at least 90 days' written notice of cancellation or nonrenewal of the policy to the plan sponsor. It also defines "stop loss" or "excess risk insurance" for the purposes of small employer health benefits plans as an insurance policy designed to reimburse a self-funded arrangement of one or more small employers for catastrophic, excess, or unexpected expenses, where the policy establishes a per person attachment point or retention of at least $20,000 or an aggregate attachment point or retention of at least 125% of expected claims per plan year.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced, Referred to Assembly Financial Institutions and Insurance Committee (on 01/14/2020)
bill text
bill summary
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bill summary
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bill summary
Document Type | Source Location |
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BillText | https://www.njleg.state.nj.us/2020/Bills/A2500/2179_I1.HTM |
Bill | https://www.njleg.state.nj.us/2020/Bills/A2500/2179_I1.PDF |
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