Bill
Bill > A3284
NJ A3284
NJ A3284Requires 90 days' notice of cancellation or nonrenewal of stop loss insurance for small employer health benefits plans.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill requires that, with respect to a policy of stop loss or excess risk insurance issued relative to a small employer health benefits plan, the insurer shall provide not less than 90 days written notice of cancellation or nonrenewal of the policy to the plan sponsor, in a form to be determined by the Commissioner of Banking and Insurance. "Stop loss" or "excess risk insurance," for the purposes of small employer health benefits plans regulated by the Department of Banking and Insurance, means an insurance policy designed to reimburse a self-funded arrangement of one or more small employers for catastrophic, excess or unexpected expenses, wherein neither the employees nor other individuals are third party beneficiaries under the insurance policy. In order to be considered stop loss or excess risk insurance for the purposes of P.L.1992, c.162 (C.17B:27A-17 et seq.), the policy shall establish a per person attachment point or retention or aggregate attachment point or retention, or both, which meet the following requirements: a. If the policy establishes a per person attachment point or retention, that specific attachment point or retention shall not be less than $20,000 per covered person per plan year; and b. If the policy establishes an aggregate attachment point or retention, that aggregate attachment point or retention shall not be less than 125% of expected claims per plan year.
AI Summary
This bill mandates that insurance companies offering stop loss or excess risk insurance to small employer health benefits plans must provide at least 90 days' written notice before canceling or not renewing these policies, with the specific form of this notice to be determined by the Commissioner of Banking and Insurance. Stop loss or excess risk insurance, in this context, refers to policies that protect self-funded health plans for small businesses from unexpectedly high or catastrophic medical expenses, and importantly, these policies do not directly cover employees or individuals as beneficiaries. To qualify as such insurance for small employer plans, these policies must have specific financial thresholds, either a per-person deductible or retention of at least $20,000 per covered individual per year, or an aggregate deductible or retention that is at least 125% of the expected claims for the year, or both.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced, Referred to Assembly Financial Institutions and Insurance Committee (on 01/13/2026)
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/2026/A3284 |
| BillText | https://pub.njleg.gov/Bills/2026/A3500/3284_I1.HTM |
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