The bill amends Section 3 of P.L.1991, c.208 (C.17B:32A-3) to clarify the provisions of coverage provided under the law for various insurance policies and contracts. It specifies that coverage is available to both residents and non-residents under certain conditions, including the domicile of the member insurers and the eligibility for coverage by associations in the states where non-residents reside. The bill also outlines exclusions from coverage, such as policies not guaranteed by the member insurer, self-funded plans, and structured settlement annuities that have undergone factoring transactions.

Additionally, the bill establishes limits on the benefits that the association may be liable for, including specific caps on life insurance death benefits, annuity benefits, and structured settlement annuity benefits. It introduces a requirement for health care providers to forgive a portion of the obligation owed by the insured in order to receive direct payment from the association. The act is set to take effect immediately upon approval.

Statutes affected:
Introduced: 17B:32A-3
Advance Law: 17B:32A-3
Pamphlet Law: 17B:32A-3