P.L. 2001, C. 409: Homeowners’ Insurance Deductibles and Rates, and Consumer Information Brochure

BULLETIN NO. 02-11 BULLETIN NO. 02-11 To: ALL INSURERS TRANSACTING HOMEOWNERS� INSURANCE IN THIS STATE From: Holly C. Bakke, Commissioner RE: P.L. 2001, C. 409: HOMEOWNERS� INSURANCE DEDUCTIBLES AND RATES, AND CONSUMER INFORMATION BROCHURE The purpose of this Bulletin is to remind insurers transacting homeowners� insurance that P.L. 2001, c. 409, effective January 8, 2002, provides for the establishment of uniform policy language regarding the applicability of hurricane deductibles under homeowners� insurance policies; establishes an expedited rate filing process for homeowners� insurers when the filer requests an increase of no more than 5% in its Statewide rate for homeowners� insurance at any time during a calendar year; and requires insurers to provide consumer information brochures to help insureds better understand certain aspects of homeowners� insurance. Pursuant to the statute, the Department of Banking and Insurance ("Department") shall establish, by rule, uniform policy language regarding the applicability of hurricane deductibles and the form of notice to be provided to an insured under a homeowners� insurance policy by an insurer utilizing a hurricane deductible program or programs. The Department also must establish by rule the information requirements to be contained in an expedited rate filing. The Department has received several inquiries regarding the implementation of this statute, and is currently in the process of developing rules for proposal to implement this statute. Once the rules are ultimately adopted, the obligations on insurers under P.L. 2001, c. 409 will become effective. Notice of the proposal will be made in the New Jersey Register, to parties on the Department�s mailing list, and will be posted on the Department�s website: www.njdobi.org . To the extent insurers have approved hurricane deductibles, they shall develop and provide insureds with consumer information as required by section 4 of the Act together with renewal notices. 05/13/2002 /s/ Holly C. Bakke Date Holly C. Bakke Commissioner