This bill amends the New Jersey Life and Health Guaranty Association's coverage limits for net cash surrender and net cash withdrawal values related to certain annuity policies and contracts. Specifically, it increases the maximum payout from $100,000 to $250,000 for policyholders who make such withdrawals or surrenders from annuities issued by member insurance companies that become insolvent. This change aims to provide greater financial protection for policyholders in the event of an insurer's insolvency.

The bill also clarifies that the revised limit will apply to annuity policies, plans, or contracts that are issued or renewed on or after the effective date, which is set for 90 days following enactment. This legislative change is intended to enhance the security of annuity holders and ensure they have access to a higher level of funds in case of their insurer's financial failure.

Statutes affected:
Introduced: 17B:32A-3