This bill amends the existing law regarding reciprocal insurance and interinsurance contracts in New Jersey. It 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 financial arrangements between subscribers and their representatives.

The bill introduces new legal language that specifies these contracts and fees are exempt from being considered related party transactions, thereby potentially simplifying regulatory oversight and fostering more straightforward business practices within the insurance sector. The act is set to take effect immediately upon passage.

Statutes affected:
Introduced: 17:50-1