Bill > S3061

This bill modifies the definition of "legal insurance" in New Jersey law by clarifying and expanding the types of legal service arrangements that are not considered traditional insurance products. The bill amends an existing law to specify that legal insurance involves a contractual obligation to provide or reimburse for specified legal services or expenses, with the cost spread among a group of persons. The legislation introduces a new exemption (item 7) for prepaid legal service arrangements where members pay in advance for specific legal services through an organization that contracts directly with attorneys and pays them fixed, pre-arranged payments without additional reimbursement. The bill also maintains existing exemptions for various types of legal service arrangements, such as individual retainer contracts, limited consultation plans, union-provided legal services, employee benefit plans, legal aid services, and nonprofit organization legal service programs. By making these modifications, the bill aims to provide clearer guidelines for distinguishing between traditional insurance products and alternative legal service models, potentially offering more flexibility for legal service providers and consumers in New Jersey.

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https://www.njleg.state.nj.us/bill-search/2024/S3061