PIA-Backed Certs Model Bill Adopted Unanimously by New Jersey Insurance Committee
The New Jersey State Assembly Committee on Financial Institutions and Insurance voted unanimously on March 8 to approve A-3731, which would regulate certificates of insurance. The bill, proposed and supported by PIANJ, was sponsored by Assemblyman Gary S. Schaer (D), who chairs the committee. It contains the same language as model legislation proposed by PIA National which was unanimously adopted by the National Conference of Insurance Legislators (NCOIL).
PIA National President Andrew C. Harris and PIA of New Jersey President Anthony F. Bavaro testified in support of the New Jersey legislation, along with PIANJ Legislative Representative Leon Zimmerman. “We support the NCOIL model legislation because it ensures that certificates will be used for their intended purpose, fostering transparency and certainty, while helping prevent their misuse,” stated PIA’s accompanying written testimony. “The model has been carefully crafted to avoid unintended consequences as it relates only to certificates of insurance. In addition, this model does not alter or impair the rights that any person has under an insurance policy.”
A little more than three months after it was adopted unanimously by NCOIL, the PIA-backed model law is now seeing action in at least eight states. In addition to New Jersey, certificates legislation is being drafted in Indiana, Wisconsin and New Mexico. Several other states are reporting that they may also take a look at certificates legislation during their upcoming legislative sessions, including Ohio, Kentucky, Delaware and Tennessee.