This bill aims to prohibit insurers from considering an individual's credit history when evaluating homeowners insurance policies. Specifically, it prevents insurers from denying, canceling, refusing to renew, or increasing premiums based on an applicant's or insured's credit history. Additionally, the bill restricts the use of credit history in assessing risk levels, determining discounts, assigning rating tiers, or evaluating eligibility for payment plans.

The intent of this legislation is to create a more equitable system for homeowners insurance in New Jersey by eliminating the reliance on credit-based insurance scores, which can disproportionately affect individuals with lower credit scores. By removing these factors from the premium determination process, the bill seeks to ensure that all residents have fair access to homeowners insurance coverage. The act is set to take effect 90 days after its enactment.