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Bill > A5450
NJ A5450
NJ A5450Establishes plan for provision of coverage to homeowners who are otherwise unable to procure homeowners insurance.
summary
Introduced
03/17/2025
03/17/2025
In Committee
03/17/2025
03/17/2025
Crossed Over
Passed
Dead
01/12/2026
01/12/2026
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill establishes a plan for the provision of coverage to homeowners who are otherwise unable to procure homeowners insurance. The bill requires the Commissioner of Banking and Insurance to promulgate rules and regulations establishing a plan for the provision of insurance coverage to homeowners who are unable to procure homeowners insurance through ordinary methods, especially those who unable to procure coverage due to the presence or threat of flooding to their property. Every insurer admitted to transact and transacting any line of insurance in the State of New Jersey is required to participate in the plan and provide insurance coverage to the extent required in the rules and regulations. The bill requires the homeowners insurance plan to provide: (1) for a rating system which shall produce rates for each coverage which are adequate for the safeness and soundness of the plan, and are not excessive nor unfairly discriminatory; (2) for rates charged to plan insureds which shall be sufficient to meet the plan's expenses and the plan's losses on an incurred basis; (3) for a limited assignment distribution system permitting insurers to enter into agreements with other insurers or qualified entities to transfer applicants and insureds; and (4) that the plan shall not be subsidized by any source external to the plan. Prior to the adoption or amendment of rules and regulations, the commissioner is required to consult with members of the insurance industry, as the commissioner deems appropriate. The bill requires the governing body administering the plan to report annually to the Legislature and the Governor on the activities and soundness of the plan.
AI Summary
This bill establishes a comprehensive plan for providing homeowners insurance to individuals who cannot obtain coverage through traditional means, with a particular focus on homeowners facing flood risks in New Jersey. The bill requires the Commissioner of Banking and Insurance to create a plan where all insurers operating in the state must participate, ensuring that homeowners who struggle to find insurance can still obtain coverage. The plan must include a fair rating system that sets adequate and non-discriminatory rates, generate sufficient revenue to cover its own expenses and potential losses, and include a mechanism for insurers to transfer applicants between companies. The governing body must be financially self-sustaining, without external subsidies, and must provide an annual report to the Legislature and Governor detailing the plan's activities and financial soundness. The bill defines "homeowners insurance" broadly, covering property loss, dwelling protection, liability, and various specific perils. Additionally, the plan's governing board will have administrative authority to investigate complaints, hear appeals, and make decisions subject to the commissioner's review, with final determinations reviewable by the Superior Court. The legislation aims to create a safety net for homeowners who might otherwise be unable to protect their property through traditional insurance markets.
Committee Categories
Business and Industry
Sponsors (3)
Last Action
Introduced, Referred to Assembly Financial Institutions and Insurance Committee (on 03/17/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/A5450 |
| BillText | https://pub.njleg.gov/Bills/2024/A5500/5450_I1.HTM |
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