Bill > A3802

This bill amends the legal definition of "legal insurance" in New Jersey by clarifying and expanding the types of legal service arrangements that are not considered traditional insurance products. The bill modifies existing law to more precisely define what constitutes legal insurance, adding a new category (7) that specifically exempts prepaid legal service arrangements where members pay in advance for specified services through an organization that contracts directly with attorneys and pays them fixed, pre-arranged payments without additional reimbursement. The bill maintains existing exemptions for various legal service models, including retainer contracts, limited consultation plans, employment-related legal services, union-provided legal assistance, and nonprofit legal service programs. The changes aim to provide greater clarity about what types of legal service arrangements fall outside the traditional insurance regulatory framework, potentially making it easier for organizations to offer flexible legal service options to members or clients. The bill will take effect 90 days after its enactment, giving organizations time to understand and adapt to the new definitions.

Business and Industry, Justice

https://www.njleg.state.nj.us/bill-search/2024/A3802