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, particularly focusing on the relationship between the insured and the member insurers. The bill outlines the criteria for coverage of unallocated annuity contracts and structured settlement annuities, emphasizing that coverage is intended primarily for residents of New Jersey, with specific provisions for non-residents who meet certain criteria. Additionally, it establishes exclusions from coverage, including policies not guaranteed by the member insurer and those that are self-funded or uninsured.

Furthermore, the bill introduces a requirement for health care providers to forgive 20% of the obligation owed by the insured when seeking direct payment from the association for claims against an insolvent insurer. This provision aims to facilitate the payment process while ensuring that the obligations of solvent member insurers remain intact. The bill also sets forth limitations on the benefits that the association may be liable for, including specific caps on life insurance, annuity benefits, and structured settlement annuities. 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