Requires insurers offering commercial general liability insurance policies to provide notification of exclusion for communicable disease.
Impact
The implementation of S968 is expected to have a significant impact on the insurance industry, as it obliges insurers to adjust their policy documentation practices. By invalidating any coverage exclusions for communicable diseases if the required notifications are not included, the bill seeks to provide enhanced protection for businesses against potential liabilities stemming from communicable diseases. This could lead to increased insurance costs for insurers as they may need to reevaluate their pricing models to accommodate these new requirements.
Summary
Bill S968 aims to enhance the transparency of commercial general liability insurance policies issued in New Jersey by requiring insurers to notify potential purchasers and policyholders about any exclusions related to communicable diseases, specifically including the transmission of COVID-19. The bill mandates that any such exclusion must be clearly stated on a separate page within the policy documentation and provided in a prominent position. This requirement is intended to ensure that policyholders are fully aware of the limits of their coverage concerning infectious diseases.
Contention
Notable points of contention surrounding S968 include the balance between consumer protection and the operational challenges posed to insurers. Proponents argue that the bill is a necessary step towards safeguarding businesses by ensuring they are aware of their coverage limitations, especially in the wake of the COVID-19 pandemic. On the other hand, critics might raise concerns about the burden this places on insurers which could translate into higher premiums for policyholders, as insurers navigate the complexities of compliance with the new regulations.
Health: other; authority to limit patient visitation in certain health care facilities; restrict in emergency orders and under certain circumstances. Amends secs. 2253, 2453 & 5145 of 1978 PA 368 (MCL 333.2253 et seq.).
Creates "Manufacturing Reboot Program" in EDA to provide financial assistance to certain manufacturing businesses; makes $10 million appropriation to EDA.
Creates "Manufacturing Reboot Program" in EDA to provide financial assistance to certain manufacturing businesses; makes $10 million appropriation to EDA.
Limits for contact tracing, digital contract tracing, immunizations, communicable disease testing, and the required disclosure of certain information established; destruction of certain data required; mandatory digital contact tracing by employers prohibited; and civil penalties provided.