Bill Text: NJ A4194 | 2010-2011 | Regular Session | Introduced

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Bill Title: Limits insurance producer commissions to 1.5% of premium in any case in which insured is a board of education.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2011-06-27 - Introduced, Referred to Assembly Financial Institutions and Insurance Committee [A4194 Detail]

Download: New_Jersey-2010-A4194-Introduced.html

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ASSEMBLY, No. 4194

STATE OF NEW JERSEY

214th LEGISLATURE

 

INTRODUCED JUNE 27, 2011

 

 

Sponsored by:

Assemblyman  GORDON M. JOHNSON

District 37 (Bergen)

 

Co-Sponsored by:

Assemblyman Cryan

 

 

 

 

SYNOPSIS

     Limits insurance producer commissions to 1.5% of premium in any case in which insured is a board of education.

 

CURRENT VERSION OF TEXT

     As introduced.

  

An Act concerning certain insurance producer commissions and fees and supplementing P.L.2001, c.210 (C.17:22A-26 et seq.).

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

      1.   Notwithstanding any provisions of P.L.2001, c.210 (C.17:22A-26 et seq.), or any other law to the contrary, an insurance producer, or an insurer through an insurance producer, shall not charge or pay a commission, service fee, brokerage, or other valuable consideration in excess of 1.5% of the premium paid for the policy for selling, soliciting, or negotiating insurance in this State on behalf of, or in any case in which the insured is, a board of education, nor shall an insurer or insurance producer pay or assign a commission, service fee, brokerage, or other valuable consideration to an insurance agency or person who does not sell, solicit, or negotiate insurance in excess of that amount in any case in which the insured is a board of education.

 

      2.   This act shall take effect immediately and apply to any insurance policy issued, executed, or renewed by a board of education on or after the 180^th day next following the date of enactment.

 

 

STATEMENT

 

      This bill limits insurance producer commissions to 1.5% of the premium paid for the policy in any case in which the insured is a board of education.   The bill prohibits an insurance producer, or an insurer through an insurance producer, from charging or paying a commission, service fee, brokerage, or other valuable consideration in excess of 1.5% of the premium paid for the policy for selling, soliciting, or negotiating insurance in this State on behalf of, or in any case in which the insured is, a board of education.