Bill Text: NJ A2430 | 2010-2011 | Regular Session | Introduced
Bill Title: Requires certain notification periods regarding due dates for premium payments for individual health benefits plans.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-03-04 - Introduced, Referred to Assembly Financial Institutions and Insurance Committee [A2430 Detail]
Download: New_Jersey-2010-A2430-Introduced.html
Sponsored by:
Assemblyman PAUL D. MORIARTY
District 4 (Camden and Gloucester)
SYNOPSIS
Requires certain notification periods regarding due dates for premium payments for individual health benefits plans.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning premium payment notices for individual health benefits plans and supplementing P.L.1992, c.161 (C.17B:27A-2 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this section:
a. "Business day" means any day other than a Saturday, Sunday or State or federal holiday.
b. Every carrier that writes individual health benefits plans in this State pursuant to P.L.1992, c.161 (C.17B:27A-2 et seq.) shall be required to mail, by first class mail, the premium billing statement to the policy or contract holder not less than 21 business days prior to the due date set forth in the premium billing statement.
c. Whenever a carrier fails to receive a monthly premium payment not less than 15 business days from the due date set forth in the premium billing statement, the carrier shall mail, by first class mail, a notice to the policy or contract holder. This notice shall inform the policy or contract holder that the carrier has yet to receive the premium payment, and that the policy or contract holder shall remit payment or the plan may be terminated pursuant to paragraph (1) of subsection b. of section 5 of P.L.1992, c.161 (C.17B:27A-6).
2. This act shall take effect on the 60th day following enactment.
STATEMENT
This bill requires insurance carriers to mail, by first class mail, the premium billing statement to the policy or contract holder not less than 21 business days prior to the due date set forth in the premium billing statement.
The bill provides that if the policy or contract holder fails to remit payment within 15 business days from the due date set forth in the premium billing statement, the carrier shall mail, by first class mail, a notice to the policy holder. This notice shall inform the policy or contract holder that the carrier has yet to receive the premium payment, and that the policy or contract holder must remit payment or the plan may be terminated on the grounds that the policy or contract holder has failed to pay the premium in accordance with the terms of the policy or contract.
