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McKeon Bill to Require Annual Disclosure of Corporate Governance Practices Signed Into Law

Measure Brings NJ into Compliance with NAIC Accreditation Standards

Bringing insurers in New Jersey into compliance with accreditation standards set by the National Association of Insurance Commissioners (NAIC), a measure requiring groups to file a confidential corporate governance annual disclosure to New Jersey’s Commissioner of Banking and Insurance was signed into law by the Governor on Monday.

Sponsor of the legislation (A-6007), now law, Assembly Financial Institutions and Insurance Committee Chairman John McKeon (D-Essex, Morris), released the following statement:

“Moving forward with the enactment of this law ensures New Jersey is doing its due diligence to comply with the NAIC Corporate Governance Annual Disclosure Model Act, which has already been adopted in 44 other states across the country.

“It enables insurers to file a confidential disclosure, in a format at their discretion, which addresses their corporate governance structure, policies and practices. In doing so, this tool will allow New Jersey’s Department of Banking and Insurance to monitor the growing regulatory needs of our institutions and understand the current practices being employed to ensure critical risk areas have appropriate oversight.”