Measure to Bring NJ into Compliance with NAIC Accreditation Standards
Seeking to bring 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 approved unanimously Thursday by the Assembly Financial Institutions and Insurance Committee.
Sponsor of the bill (A-6007), Assembly Financial Institutions and Insurance Committee Chairman John McKeon (D-Essex, Morris), released the following statement:
“Moving forward with this legislation ensures that 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.
“The bill would provide for insurers to file a confidential disclosure, in a format at their discretion, addressing their corporate governance structure, policies and practices. In doing so, this tool would allow New Jersey’s Department of Banking and Insurance to monitor the growing regulatory needs of our institutions and to understand the current practices being employed for critical risk areas have appropriate oversight.”
The deadline to pass the measure, ensuring New Jersey insurers and insurance groups maintain accreditation standards, is January 1, 2020.
The bill now goes to the Assembly Speaker for further review.