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 distinction is important for regulatory purposes and aims to streamline the relationship between subscribers and their representatives.

The bill introduces new legal language that specifies these contracts and fees are exempt from being treated as related party transactions, thereby providing clarity and potentially reducing regulatory burdens for those involved in such agreements. The changes are intended to enhance the operational framework for reciprocal insurance arrangements while ensuring compliance with existing insurance regulations. The act is set to take effect immediately upon passage.

Statutes affected:
Introduced: 17:50-1