Assembly Committee to consider PIANJ-supported legislation on certificates
March 4, 2013
While the State Assembly Committee on Financial Institutions and Insurance is scheduled this week to consider a PIANJ-supported bill (A-3731) regulating certificates of insurance, State Sen. Nia H. Gill, D-34, has introduced an identical bill (S-2624).
Both bills contain the same language as model legislation unanimously adopted by the National Conference of Insurance Legislators.
Assemblyman Gary S. Schaer, D-36, who chairs the Assembly Committee, is the prime sponsor of A-3731. Senator Gill chairs the Senate Commerce Committee, which will consider S-2624.
PIANJ, instrumental at NCOIL meetings in winning approval of the model legislation, sought the strong sponsorship of the bills by Schaer and Gill. Their identical bills would prohibit changes to certificate forms and would assert that certificates are not insurance policies and don’t provide different or extra coverage than the policy does. There have been pressures on agents from non-insurance entity third parties to issue certificates of insurance that conflict with underlying policy terms.