Bill Text: NJ S2300 | 2010-2011 | Regular Session | Introduced
Bill Title: Requires producer disclosure of compensation to purchaser of health benefits plan.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Introduced - Dead) 2010-09-23 - Introduced in the Senate, Referred to Senate Commerce Committee [S2300 Detail]
Download: New_Jersey-2010-S2300-Introduced.html
Sponsored by:
Senator CHRISTOPHER "KIP" BATEMAN
District 16 (Morris and Somerset)
Senator ROBERT M. GORDON
District 38 (Bergen)
SYNOPSIS
Requires producer disclosure of compensation to purchaser of health benefits plan.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning certain insurance producer compensation and amending P.L.2008, c.38.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 25 of P.L.2008, c.38 (C.17:22A-41.1) is amended to read as follows:
25. a. An insurance producer licensed pursuant to P.L.2001, c.210 (C.17:22A-26 et al.) who sells, solicits, or negotiates health [insurance policies or contracts] benefits plans to residents of this State shall notify the purchaser of the [insurance] health benefits plan, in writing, [of the amount of any commission, service fee, brokerage, or other valuable consideration that the producer will receive as a result of the sale, solicitation or negotiation of the health insurance policy or contract. If the commission, fee, brokerage, or other valuable consideration is based on a percentage of premium, the insurance producer shall include that information in the notification to the purchaser] prior to the purchase of the health benefits plan that, in connection with that purchase, the insurance producer: (1) will receive compensation from an insurer; (2) represents the insurer; and (3) may provide services to the purchaser on behalf of the insurer.
b. The commissioner may specify, by regulation, the information that shall be provided by [an] the insurance producer in the notification to a purchaser of a health [insurance] benefits plan and the procedure for providing the notification.
(cf: P.L.2008, c.38, s.25)
2. This act shall take effect immediately.
STATEMENT
This bill, which contains language from the section of the Producer Licensing Model Act adopted by the National Association of Insurance Commissioners (NAIC) concerning compensation disclosure, will require insurance producers to disclose to the purchaser of health benefits plans, in writing, prior to the purchase of a health benefits plan that, in connection with that purchase, the insurance producer: (1) will receive compensation from an insurer; (2) represents the insurer; and (3) may provide services to the purchaser on behalf of the insurer.
