Bill
Bill > S211
NJ S211
Requires insurers offering commercial general liability insurance policies to provide notification of exclusion for communicable disease.
summary
Introduced
01/11/2022
01/11/2022
In Committee
01/11/2022
01/11/2022
Crossed Over
Passed
Dead
01/08/2024
01/08/2024
Introduced Session
2022-2023 Regular Session
Bill Summary
This bill requires insurers offering commercial general liability insurance policies to provide a notification of any exclusion for communicable disease, including the transmission of coronavirus disease 2019. The bill requires authorized insurers to provide to any potential purchaser of, or any policyholder seeking renewal of, a commercial general liability insurance policy, a clear statement on a separate page and in a prominent position, as to whether the policy provides liability coverage for transmission of communicable disease, including the transmission of coronavirus disease 2019. If the policy contains an exclusion for coverage of transmission of communicable disease or an exclusion for coverage of the transmission of coronavirus disease 2019, the statement is to include: (1) the cost of removing the exclusion; or (2) if the exclusion cannot be removed, a statement providing that coverage for the transmission of communicable disease, including the transmission of coronavirus disease 2019, may be purchased from another insurer. If an insurance contract fails to include the statement required by the bill, any coverage exclusion for transmission of communicable disease or transmission of coronavirus disease 2019 is to be invalid, and the contract is deemed to provide liability coverage for transmission of communicable disease, including the transmission of coronavirus disease 2019. As insurance companies adjust to the coronavirus disease 2019 pandemic, some companies have begun to include exclusions for transmission of communicable disease in their commercial general liability policies. This bill requires that insurers provide a prominent notification of any such exclusions to potential purchasers and policyholders so that businesses can be certain of the limits of their coverage.
AI Summary
This bill requires insurers offering commercial general liability insurance policies to provide a notification of any exclusion for communicable disease, including the transmission of COVID-19. The bill mandates that insurers clearly disclose whether the policy provides liability coverage for the transmission of communicable diseases, and if there is an exclusion, the cost of removing it or a statement that such coverage can be purchased elsewhere. If the required notification is not provided, any exclusion for communicable disease transmission is deemed invalid, and the policy is deemed to provide liability coverage for the transmission of communicable diseases, including COVID-19. This is intended to ensure that businesses are aware of the limits of their commercial general liability coverage as insurers adapt to the COVID-19 pandemic.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Commerce Committee (on 01/11/2022)
Official Document
bill text
bill summary
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bill summary
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bill summary
Document Type | Source Location |
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State Bill Page | https://www.njleg.state.nj.us/bill-search/2022/S211 |
BillText | https://www.njleg.state.nj.us/Bills/2022/S0500/211_I1.HTM |
Bill | https://www.njleg.state.nj.us/Bills/2022/S0500/211_I1.PDF |
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