This bill amends existing legislation concerning legal insurance in New Jersey, specifically P.L.1981, c.160. It introduces a new definition of "legal insurance," which now includes the obligation to pay or reimburse for specified legal services or expenses in exchange for a specified payment over time. The bill clarifies that the payment of an administrative fee to an attorney does not constitute payment or reimbursement for legal services or expenses. Additionally, it outlines several exclusions from the definition of legal insurance, such as retainer contracts, limited consultation plans, and legal services provided by unions or nonprofit organizations.

The intent of the bill is to modernize the legal framework surrounding legal service plans, distinguishing them from traditional insurance products. By doing so, it emphasizes that these plans do not involve the payment of claims or the assumption of risk, thereby clarifying their nature and operation within the legal landscape. The bill is set to take effect 90 days after its enactment.

Statutes affected:
Introduced: 17:46C-3