Jan 11, 2016

PIANJ hails passage of Certificates of Insurance Law

TRENTON, N.J.-The Professional Insurance Agents of New Jersey is hailing Gov. Chris Christies signature of S-3270 (Chapter 195 of the Public Laws of 2015) into law today. The bill, which makes it illegal to request the issuance of certificates that contain any false or misleading information, has been the top priority for PIANJ this legislative session. The association testified in favor of the legislation during hearings of the Assembly Financial Institutions and Insurance Committee and the Senate Commerce Committee last month.

"PIANJ commends Gov. Christie, Assemblyman Gary S. Schaer, D-36, Sen. Nia H. Gill, D-34, the bills prime sponsors, and the eight other legislators who shepherded this important legislation into law," said PIANJ President Charles J. Caruso, CIC, CPIA. "This law will protect New Jerseys insurance-buying community and their insurance agents, who will not have to address impossible demands from third parties."

The new law takes effect April 10, 2016, and addresses an inappropriate and now illegal request often made by insureds or lenders of insurance agents. The laws provisions apply to all certificates of insurance issued in connection with property, operations or risks in the state. Any false or misleading information in a certificate would be a violation of the states insurance fraud act. In addition to regulating the use of certificates, the bill provides the Department of Banking and Insurance authority to enforce the law.

PIANJ is a trade association representing professional, independent insurance agencies, brokerages and their employees throughout New Jersey.

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