ASSEMBLY FINANCIAL INSTITUTIONS AND INSURANCE COMMITTEE

STATEMENT TO

ASSEMBLY, No. 4551

STATE OF NEW JERSEY

DATED:  JUNE 2, 2021

      The Assembly Financial Institutions and Insurance Committee reports favorably Assembly Bill No. 4551.

      This bill authorizes insurers which issue policies insuring against loss or damage to property which include the loss of use and occupancy and business interruption in this State, to offer to their insureds and prospective insureds a rider to such an insurance policy which includes, as a covered peril under that policy, coverage for global virus transmission or pandemic, or both.

      Industry sources have indicated that the Insurance Services Office, ISO, has developed such a rider, but to date, no states have yet approved the form.

      The bill also requires the Commissioner of Banking and Insurance to review and approve, as appropriate, any insurance policy rider submitted by an insurer and designed to provide the coverage offered pursuant to the bill on an expedited basis.