This bill amends the New Jersey Life and Health Guaranty Association's coverage limits for net cash surrender and net cash withdrawal values associated with certain annuity policies and contracts. Specifically, it increases the maximum payout from $100,000 to $250,000 for policyholders who make such withdrawals 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 revised legal language reflects this increase in coverage, with the specific deletion of the previous limit of $100,000 and the insertion of the new limit of $250,000. The bill is set to take effect 90 days after enactment and will apply to annuity policies, plans, or contracts issued or renewed on or after that date. This legislative change is intended to enhance the security of annuity holders in New Jersey, ensuring they have access to higher cash values in times of financial distress.

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