TRENTON – Legislation sponsored by Senator Nia H. Gill (D-Essex) to streamline the approval process for new insurance products, which will get products on the market faster and thereby increase competition among carriers was signed into law today by Governor Chris Christie.
The law (S-175) includes New Jersey in the ‘Interstate Insurance Product Regulation Compact,’ a contract between states that allows them to cooperate on the regulation of insurance. The compact allows insurance companies to file new products with a multi-state commission that serves as a one-stop-shop for review and approval. Once approved, the product can be sold in each of the 38 member states.
The compact is also designed to promote and protect the interests of consumers, as it holds insurance companies to uniform standards.
“Joining this compact will streamline the approval process for companies looking to sell new insurance products in New Jersey,” said Senator Gill, chair of the Senate Commerce Committee. “At the same time, the compact will help to ensure that provisions included in new insurance products are clear, and follow strict product standards that are developed by the multi-state commission.”