New Jersey 2022-2023 Regular Session

New Jersey Assembly Bill A531

Introduced
1/11/22  

Caption

Authorizes insurers issuing business interruption insurance to offer rider for global virus transmission and pandemic coverage.

Impact

If enacted, this bill would amend existing insurance regulations within New Jersey's Title 17, thereby providing a formal mechanism for insurers to include pandemic-related coverage in their business interruption policies. The expected outcome is an increase in the availability of insurance products that address the risks associated with pandemics, potentially aiding businesses in their recovery from unforeseen economic disruptions. This measure may also influence the insurance market by encouraging companies to consider and develop such coverages.

Summary

Assembly Bill A531 aims to authorize insurers in New Jersey that issue policies covering business interruption due to property loss or damage to offer a rider specifically for coverage related to global virus transmission or pandemics. This bill is a direct response to the challenges faced by businesses during the COVID-19 pandemic, where many businesses were unable to claim losses due to the exclusion of pandemic-related coverage in their insurance policies. By allowing this rider, the bill seeks to better protect businesses against future global health crises.

Contention

Despite its potential benefits, there may be points of contention regarding the introduction of such coverage. Insurers might be concerned about the financial implications of providing additional coverage against pandemics, given the substantial losses reported during the current health crisis. Furthermore, while this bill could provide necessary financial safeguards for businesses, questions arise about the sustainability of the insurance market and the potential for increased premiums that could follow from broader coverage options.

Companion Bills

No companion bills found.

Previously Filed As

NJ S3637

Establishes New Jersey Pandemic Risk Reinsurance Program.

NJ A1115

Creates certain protections for insurers and insurance producers engaging in business of insurance in connection with cannabis-related businesses.

NJ S4018

Creates certain protections for insurers and insurance producers engaging in business of insurance in connection with cannabis-related businesses.

NJ SB92

Defending American Sovereignty in Global Pandemics ActThis bill prohibits the United States from becoming a party to a World Health Organization (WHO) agreement related to strengthening pandemic prevention, preparedness, and response except pursuant to a treaty made under Article II, Section 2, clause 2 of the U.S. Constitution (which requires that two-thirds of Senators present concur with the treaty).The bill also prohibits federal funding for WHO beginning on the effective date of such an agreement and ending on the date when the Senate ratifies the agreement.

NJ A2849

Prohibits electric public utilities from billing customers for certain services during service interruptions and requires repair of certain street lights.

NJ S968

Requires insurers offering commercial general liability insurance policies to provide notification of exclusion for communicable disease.

NJ A798

Requires State entities to offer optional service for businesses to receive certain notices electronically.

NJ A3527

Decreases the premium receipts tax for surplus lines insurance coverage.

NJ HB91

AN ACT relating to health insurance coverage by out-of-state insurers.

NJ A612

Requires health insurers, SHBP, and SEHBP to provide coverage for certain drug regimens for treatment of AIDS or HIV under certain circumstances.

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