This bill amends the existing law regarding reciprocal insurance and interinsurance contracts in New Jersey. It specifically clarifies 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 provide clearer guidelines for the relationships and transactions involved in reciprocal insurance arrangements.

Additionally, the bill updates the regulatory framework governing these contracts, ensuring that they are subject to the provisions of the act and not to other insurance-related statutes, except where specified. The intent of these amendments is to streamline the legal interpretation of such contracts and enhance the operational efficiency of reciprocal insurance entities. The bill is set to take effect immediately upon enactment.

Statutes affected:
Introduced: 17:50-1