Bill
Bill > S1477
NJ S1477
NJ S1477Provides that contracts between subscribers and attorney in fact are not a related party transaction.
summary
Introduced
01/09/2024
01/09/2024
In Committee
03/24/2025
03/24/2025
Crossed Over
Passed
Dead
01/12/2026
01/12/2026
Introduced Session
2024-2025 Regular Session
Bill Summary
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.
AI Summary
This bill clarifies that agreements between individuals or entities who exchange insurance contracts (called "subscribers") and the person or entity managing those contracts (the "attorney in fact"), along with any associated fees, will not be considered a "related party transaction." A related party transaction typically involves dealings between entities that have a close relationship, which can sometimes raise concerns about fairness or potential conflicts of interest. By explicitly stating these contracts and fees are not related party transactions, this bill aims to streamline operations and avoid potential regulatory complications for reciprocal or interinsurance exchanges, which are a type of insurance where policyholders insure each other.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Reported from Senate Committee, 2nd Reading (on 03/24/2025)
Official Document
bill text
bill summary
Loading...
bill summary
Loading...
bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/S1477 |
| BillText | https://pub.njleg.gov/Bills/2026/S1500/1477_I1.HTM |
| Analysis - Technical Review Of Prefiled Bill | https://pub.njleg.gov/Bills/2024/S1500/1477_T1.PDF |
| Analysis - Statement SCM 3/24/25 | https://pub.njleg.gov/Bills/2024/S1500/1477_S1.PDF |
| BillText | https://pub.njleg.gov/Bills/2024/S1500/1477_I1.HTM |
Loading...