Bill > A3247

Introduced Session

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

Committee Categories

Dan Hutchison (D)*, 

Introduced, Referred to Assembly Financial Institutions and Insurance Committee (on 01/13/2026)

Official Document