Bill Text: NJ A3486 | 2010-2011 | Regular Session | Introduced
Bill Title: Allows denial of coverage to an insured who commits fraud but not to innocent spouse.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-11-15 - Introduced, Referred to Assembly Financial Institutions and Insurance Committee [A3486 Detail]
Download: New_Jersey-2010-A3486-Introduced.html
Sponsored by:
Assemblyman ANGEL FUENTES
District 5 (Camden and Gloucester)
SYNOPSIS
Allows denial of coverage to an insured who commits fraud but not to innocent spouse.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning beneficiaries of casualty insurance policies and supplementing Title 17 of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Notwithstanding any other law to the contrary, an insurer who issues casualty insurance in this State may void coverage under a policy for casualty insurance to an insured who commits fraud or violates any provision of that casualty insurance policy. The insurer shall not, however, deny coverage to an innocent spouse or the estate of an innocent spouse of the insured provided that: (1) the spouse did not knowingly participate in the fraud or violation; and (2) the spouse is an intended beneficiary of that insurance policy.
2. This act shall take effect immediately.
STATEMENT
This bill provides that coverage under a casualty insurance policy may be voided to an insured who commits fraud or a policy violation; however, the extension of coverage under such policy would not be denied to an innocent spouse, or the estate of an innocent spouse, even though the insured has committed fraud or is found to be in violation of the policy's provisions.
