Bill > S3178

Introduced Session

This bill establishes the New Jersey Pandemic Risk Reinsurance Fund and the New Jersey Pandemic Risk Reinsurance Program (program) for eligible insurers offering business interruption insurance coverage pursuant to the bill when claims payable resulting from the covered public health emergency exceed $75 million Statewide. Under the bill, the Commissioner of Banking and Insurance is to establish the New Jersey Pandemic Risk Reinsurance Program pursuant to the following guidelines: a. No compensation is to be paid from the program unless the aggregate industry losses in New Jersey resulting from a covered public health emergency exceed $75 million. b. Subject to the availability of funds, the aggregate annual maximum amount paid out of the program is not to exceed $500 million. c. Losses in excess of the insurer deductible but not exceeding the aggregate annual maximum amount pursuant to the provisions of the bill are to be covered jointly by the program and participating eligible insurers subject to each insurer's retention. d. The program is to pay incurred losses on a pro rata basis, the methodology for which is to be determined by the commissioner within 240 days of the effective date of this act. e. Reinsurance purchased by a participating eligible insurer through the private market is not to affect the calculation of the insurer's deductible or retention. The bill provides that the New Jersey Pandemic Risk Reinsurance Fund is to consist of an annual appropriation out of the General Fund of the State of not less than $50 million. In addition, the bill provides for not less than $50 million to be allocated out of the amounts of federal government assistance provided to this State pursuant to "Coronavirus Aid, Relief, and Economic Security Act," Pub. Law 116-136. Lastly, the bill provides that, out of the amounts of additional federal government assistance that may become available to this State with regard to the coronavirus disease 2019 pandemic, not less than $50 million is to be allocated to the New Jersey Pandemic Risk Reinsurance Fund. The bill provides that, as a condition of participating in the New Jersey Pandemic Risk Reinsurance Program established pursuant to this act, an eligible insurer is required to offer to an insured or prospective insured with no more than 100 eligible employees in the State of New Jersey, a rider to the insurance policy which includes, as a covered peril under that policy, coverage for global virus transmission or pandemic, or both, pursuant to a covered public health emergency. The Commissioner of Banking and Insurance is to review and approve, as appropriate and on an expedited basis, any insurance policy rider submitted by an insurer and designed to provide the coverage offered pursuant to this section.

Committee Categories

Nellie Pou (D)*,  Troy Singleton (D)*, 

Introduced in the Senate, Referred to Senate Commerce Committee (on 11/12/2020)

Official Document