This bill amends the existing law regarding reciprocal insurance and interinsurance contracts in New Jersey. It specifies that contracts between subscribers and their attorney in fact, as well as any fees associated with these contracts, will not be classified as related party transactions. This change aims to clarify the legal standing of such contracts and ensure that they are treated distinctly from other transactions that may involve conflicts of interest.

Additionally, the bill updates the regulatory framework governing these contracts, stating that they will be regulated by the act itself and not by other insurance statutes in the state, except where otherwise specified. This amendment is intended to streamline the regulatory process for subscribers and their attorneys in fact, promoting clarity and efficiency in the handling of reciprocal insurance agreements. The bill is set to take effect immediately upon passage.

Statutes affected:
Introduced: 17:50-1