In the wake of Superstorm Sandy, insurers in New Jersey will be required to add a summary sheet to homeowners policies issued to consumers, which an industry official cautiously endorsed as long as it does not prove burdensome to carriers.
On Monday, the Star-Ledger reported that Gov. Chris Christie signed into law a bill that requires insurers to provide a one-page summary explaining notable coverage and exclusions under the policy. The summary will be included with the consumer information brochure that policyholders already receive.
Legislators say that after Superstorm Sandy struck the Jersey shore many of their constituents were shocked to discover that their policy did not cover all they thought it would and the summary's aim is to clear-up any confusion. The law (A-3642) requires the state's Commissioner of Banking and Insurance to determine what notable coverage and exclusions are under the policy and incorporate that into the summary.
From the industry's standpoint, Insurance Council of New Jersey (ICNJ) President Christine O'Brien agrees that many consumers were upset and confused about the extent of coverage and responsible carriers. It is a challenge the industry agrees needs addressing. The law, she says, intends to do that, but one concern the industry has is that the summary not allow alteration of or supplant details of the policy. She says the law does address this as insurers requested. O'Brien says ICNJ has done extensive research of other states that provide summaries and will present those findings to the Commissioner in a meeting that she expects "to happen soon."
"The DOBI (Department of Banking and Insurance) has been very fair in working with consumers as well as the carriers," says O'Brien. "We will be continuing in that vein. [The department understands] the intent of the governor, and what he wanted to do with this, and the legislature, and they understand our intent in making sure that it is informative and not onerous to implement."
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