§1

C.17:36-5.31

§2

Note to §§1 & 3

§3

C.17:36-5.32

§4

Note to §§1 & 3

P.L. 2000, CHAPTER 84, approved August 14, 2000

Assembly Committee Substitute (First Reprint) for

Assembly, Nos. 436 and 494

An Act requiring certain insurers and others to provide certain notice concerning flood insurance.

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

      1. Every fire and casualty insurer, including the New Jersey Insurance Underwriting Association created pursuant to P.L.1968, c.129 (C.17:37A-1 et seq.), shall provide its policyholders ¹[and applicants for] of¹ homeowners insurance, at the time of the issuance of the policy and with each renewal notice for the policy, with written notice, prescribed by the Commissioner of Banking and Insurance, that includes the following information:

      a. A homeowners insurance policy does not cover property damaged by a flood;

      b. That flood insurance may be available through the National Flood Insurance Program in participating communities; ¹and¹

      c. ¹[A schedule from the National Flood Insurance Program containing the amount of flood insurance available for structural coverage and contents coverage, and any supplemental information provided by the Department of Banking and Insurance; and

      d. A toll free number for the National Flood Insurance Program for policyholders and applicants to call for information concerning the approximate cost of coverage] That the National Flood Insurance Program coverage contains separate content and structure coverage and that a policyholder should consult with the National Flood Insurance Program or his insurer or insurance producer as to whether the coverage selected is appropriate to the policyholder's needs¹.

      ¹[2. Every fire and casualty insurer, including the New Jersey Insurance Underwriting Association created pursuant to P.L.1968, c.129 (C.17:37A-1et seq.), and every insurance producer that services flood insurance policies directly through the National Flood Insurance Program, shall provide its policyholders and applicants for flood insurance, at the time of the issuance of the flood insurance policy and with each renewal notice for the flood insurance policy, with written notice, prescribed by the commissioner, that includes the following information:

      a. That a structural flood insurance policy does not cover the contents of property damaged by a flood;

      b. That a contents flood insurance policy does not cover the structure of property damaged by a flood; and

      c. That other policies insuring either the contents or structure of the property may not be applicable when that property is damaged by a flood.]¹

      ¹[3. Every application for homeowners insurance and flood insurance, and any subsequent policy or renewal form which requires a signature, on or after the effective date of this act, shall contain an acknowledgment, prescribed by the commissioner, indicating that the insured has received the appropriate notices required by this act. The acknowledgement shall serve as confirmation and acceptance of the notices required by this act.]¹

      ¹[4.] 2.¹ The commissioner shall issue the forms of notice prescribed by this act within 90 days following the enactment of this act.

      ¹[5.] 3.¹ If the commissioner determines that an insurer has ¹[violated] committed or performed, with such frequency as to indicate a general business practice, violations of¹ any provisions of this act, the commissioner may impose a civil penalty in an amount up to $2,500 for the first violation and up to $5,000 for each and every subsequent violation, collectible in an action brought in the name of the commissioner pursuant to the provisions of the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.). A violation is ¹[failure] a general business practice of failing¹ to provide notice to a policyholder ¹[or applicant]¹, where the failure is not due to the commissioner's failure to prescribe the notices required pursuant to this act.

      ¹[6.] 4.¹ This act shall take effect on the 180th day following enactment, except that section ¹[4] 2¹ shall take effect immediately.

Requires insurers to provide certain notice concerning flood insurance.