Bill Text: NJ A2985 | 2014-2015 | Regular Session | Introduced
Bill Title: Requires insurers writing homeowners insurance policies in the State to offer certain coverage for heating oil tanks.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Introduced - Dead) 2014-03-24 - Introduced, Referred to Assembly Financial Institutions and Insurance Committee [A2985 Detail]
Download: New_Jersey-2014-A2985-Introduced.html
Sponsored by:
Assemblyman GARY S. SCHAER
District 36 (Bergen and Passaic)
SYNOPSIS
Requires insurers writing homeowners insurance policies in the State to offer certain coverage for heating oil tanks.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning homeowners insurance coverage and supplementing Title 17 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Every insurer authorized to transact the business of homeowners insurance in this State shall make available as an option for purchase, in every homeowners insurance policy delivered, issued, executed, or renewed in this State on or after the effective date of this act, coverage for:
(1) removal of a leaking heating oil tank from the homeowner's property; and
(2) remediation of damage caused by the discharge of heating oil from the homeowner's leaking tank or any piping, fuel supply line, equipment or system connected to the tank to:
(a) the homeowner's property, including any impact on soil, indoor air, groundwater or surface water; and
(b) a third party's property, including but not limited to nearby or adjoining property, or groundwater or surface water.
b. The commissioner shall establish by regulation the amounts of coverage per occurrence and the amounts of any deductible per claim or policy period for policies offered pursuant to this section.
c. If a homeowner declines the option to purchase coverage offered pursuant to subsections a. and b. of this section, the insurer shall obtain a written waiver of the coverage, signed by the homeowner, whose signature shall be notarized by a notary public.
d. For purposes of this act, "heating oil tank" means a liquid fuel tank in which heating oil is stored and from which heating oil is delivered or pumped through a fuel supply line to an oil burner, whether the tank is located within a dwelling or other structure, underground, or outdoors.
e. This section shall not apply to abandoned, closed, or out of service heating oil tanks.
2. This act shall take effect on the first day of the sixth month next following the date of enactment.
STATEMENT
This bill requires homeowners insurance companies to make available as an option for purchase, in every homeowners insurance policy delivered, issued, executed, or renewed in this State on or after the effective date of the bill, coverage for certain leaking heating oil tanks.
The bill requires that this coverage be offered for:
(1) removal of a leaking heating oil tank from the homeowner's property; and
(2) remediation of damage caused by the discharge of heating oil from the homeowner's leaking tank or any piping, fuel supply line, equipment or system connected to the tank to:
§ the homeowner's property, including any impact on soil, indoor air, groundwater or surface water; and
§ a third party's property, including but not limited to nearby or adjoining property, or groundwater or surface water.
The bill also provides that the Commissioner of Banking and Insurance establish by regulation the amounts of coverage per occurrence and the amount of deductible per claim or policy period for policies issued under the bill.
If a homeowner declines the option to purchase coverage offered pursuant to this bill, the insurer shall obtain a written waiver of the coverage signed by the homeowner whose signature shall be notarized by a notary public. The bill shall not apply to abandoned, closed, or out of service heating oil tanks.
