2/8/2013 - Insurance to become easier to understand in New Jersey
In an attempt to make homeowners insurance less complex for the average consumer, New Jersey legislators could soon sign a bill into law that aims to do just that.
According to multiple sources, Assembly Bill 3642 was recently granted the approval it needed to pass out of committee in the New Jersey Legislature so more lawmakers can consider its passage. Should it garner the votes it needs, the piece of legislation would mandate that insurers write various policy information in a way that's clear, readily understandable and can be interpreted by the average consumer.
It would also require that the basic information included in a plan be summarized, so that policyholders could read about what it entails in a one-page overview.
Based on information recently reported by New Jersey newspaper The Newark Star Ledger, legislators decided to craft the bill in the wake of Hurricane Sandy, when many policyholders found themselves confused about various portions of their plans, such as if their homeowner's insurance policies included flood insurance. There were also some misunderstandings about different exclusions that applied.
Should the bill pass, it's not known when insured policyholders would start to see these summaries on their plans, but Insurance Journal reports that the state's department of banking would likely make this determination.
Much has happened legislatively since Sandy pounded the Garden State. The Congress recently passed a $60 billion package that will go toward providing relief to those affected by the superstorm.