New Jersey Lawmakers Advance Bill To Allow Pandemic Insurance
A New Jersey Assembly committee on Wednesday advanced legislation that would permit insurers to offer coverage to policyholders for losses stemming from a pandemic like the coronavirus outbreak under provisions that state regulators would have to review on an expedited basis.
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With businesses across the Garden State struggling to secure such coverage amid the COVID-19 pandemic, the Assembly Financial Institutions and Insurance Committee approved A.B. 4551, which would enable insurance companies to offer a policy “rider” that would extend coverage for “global virus transmission or pandemic, or both.”
The legislation, which was introduced in August, tackles a coverage issue that has sparked litigation in New Jersey state and federal courts after insurers refused to cover pandemic-related losses for businesses that took financial hits in the wake of government restrictions aimed at curbing the spread of COVID-19.
The legislation, which was introduced in August, tackles a coverage issue that has sparked litigation in New Jersey state and federal courts after insurers refused to cover pandemic-related losses for businesses that took financial hits in the wake of government restrictions aimed at curbing the spread of COVID-19.
The legislation would take effect immediately and apply to insurance policies issued on or after the date when the DOBI commissioner approves such a rider.
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