Bill Text: NJ S893 | 2014-2015 | Regular Session | Introduced
Bill Title: Clarifies DOBI's regulatory authority over certain flood insurance claims.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2014-01-14 - Introduced in the Senate, Referred to Senate Commerce Committee [S893 Detail]
Download: New_Jersey-2014-S893-Introduced.html
STATE OF NEW JERSEY
216th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2014 SESSION
Sponsored by:
Senator JENNIFER BECK
District 11 (Monmouth)
Senator JEFF VAN DREW
District 1 (Atlantic, Cape May and Cumberland)
SYNOPSIS
Clarifies DOBI's regulatory authority over certain flood insurance claims.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act concerning flood insurance and supplementing P.L.1947, c.379 (C.17:29B-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Notwithstanding any law, rule or regulation to the contrary, the provisions of P.L.1947, c.379 (C.17:29B-1 et seq.) shall apply to an insurer licensed to do business in the State administering or handling claims of insurance under the National Flood Insurance Program's "Write Your Own" program established pursuant to 42 U.S.C. s.4081.
2. This act shall take effect immediately.
STATEMENT
This bill clarifies that the provisions of P.L.1947, c.379 (C.17:29B-1 et seq.), which concern unfair methods of competition or unfair or deceptive acts or practices in the business of insurance, apply to insurers licensed to do business in the State administering or handling claims of insurance under the National Flood Insurance Program's "Write Your Own" program, established in connection with the National Flood Insurance Program ("NFIP"). The provisions of P.L.1947, c.379 (C.17:29B-1 et seq.) provide that, committed with enough frequency to indicate a business practice, it is an unfair and deceptive practice to fail to attempt in good faith to effectuate the prompt, fair and equitable settlements of claims of insurance.
The NFIP is a federal program administered by the Federal Emergency Management Agency ("FEMA"). Although the program is a federal program, the flood insurance itself can be purchased from and the claims may be administered by private insurance companies who participate in FEMA's "Write Your Own" program. The bill is intended to clarify that insurers licensed by the State are subject to regulation by the Department of Banking and Insurance under P.L.1947, c.379 (C.17:29B-1 et seq.) in the handling of those flood insurance claims.
In light of the devastation and widespread flood damage caused by Hurricane Sandy, it is the sponsor's intent to provide effective and stringent oversight of the handling of flood claims by State licensed insurers in order to ensure the prompt, fair and equitable settlement of those claims.
