This bill amends the existing law regarding reciprocal insurance and interinsurance contracts in New Jersey. It specifies 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 clarify the legal standing of such contracts and ensure that they are treated distinctly from other transactions that may involve conflicts of interest.
The bill introduces new legal language that states these contracts and fees are exempt from being considered related party transactions, thereby providing a clearer regulatory framework for subscribers and their attorneys in fact. Additionally, it reaffirms that these contracts will be governed by the provisions of the act and not by other insurance-related statutes, except where otherwise specified. The act is set to take effect immediately upon passage.
Statutes affected: Introduced: 17:50-1