Bill
Bill > A5650
NJ A5650
Requires consultation with insurance producer or provision of cost benefit analysis prior to sale of automobile insurance policy.
summary
Introduced
05/12/2021
05/12/2021
In Committee
05/12/2021
05/12/2021
Crossed Over
Passed
Dead
01/11/2022
01/11/2022
Introduced Session
2020-2021 Regular Session
Bill Summary
This bill prohibits an automobile insurer from issuing a policy of motor vehicle liability insurance to an individual unless the individual consults with an insurance producer about the policy prior to purchase. In addition, the bill permits an insurer to sell a policy of insurance through an internet website to an individual who has not consulted with an insurance producer if the insurer provides the individual with a cost benefit analysis prior to selling the policy of insurance.
AI Summary
This bill prohibits automobile insurers from issuing a policy to an individual unless the individual consults with an insurance producer (a licensed insurance agent) prior to purchase. However, the bill allows insurers to sell policies through their websites to individuals who have not consulted with a producer, as long as the insurer provides the individual with a cost-benefit analysis of the policy before selling it. The bill also requires the Department of Banking and Insurance to adopt regulations to define what constitutes a consultation and a cost-benefit analysis, and to implement the provisions of the bill.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced, Referred to Assembly Financial Institutions and Insurance Committee (on 05/12/2021)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| BillText | https://www.njleg.state.nj.us/2020/Bills/A9999/5650_I1.HTM |
| Bill | https://www.njleg.state.nj.us/2020/Bills/A9999/5650_I1.PDF |
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