17:29AA-33 Publication of summary concerning business interruption insurance.

287 words·~1 min read·/nj/17-22

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

1. The Department of Banking and Insurance shall publish on its internet website, on or before the 90th day after the date of enactment of P.L.2021, c.98 (C.17:29AA-33 et al.), a one page summary of common insurance clauses concerning coverage for the loss of use and occupancy of a commercial property and business interruption that may be used in a commercial insurance policy. The summary shall:

a. be developed through a public stakeholder process;

b. be written in easily understandable language; and

c. include:

(1)information concerning common coverage triggers;

(2)examples of perils typically covered;

(3)a summary of common exclusions;

(4)the following statement, in a prominent place in the summary: "Your policy may not cover pandemics or viruses";

(5)the following statement: "Most business interruption insurance policies cover losses sustained due to a suspension of business where the suspension was caused by direct physical loss of or damage to property or the insured's premises, and where the loss or damage is caused by or results from a specified peril or covered cause of loss. For such policies, a government ordered shutdown may not trigger business interruption insurance coverage in the absence of physical damage to the insured property."; and

(6)the following disclaimer: "This summary is not a replacement for the terms of the policy of insurance, shall not have the effect of altering the coverage afforded by the policy, and shall not confer new or additional rights beyond those expressly provided for in the policy. This information is only provided as guidance to the policyholder in understanding the terms of the policy of insurance. You should consult your policy, agent and insurer if you have questions about your particular coverage."

L.2021, c.98, s.1.