Bill Text: NJ A3960 | 2022-2023 | Regular Session | Introduced
Bill Title: Prohibits insurers, SHBP, and SEHBP from charging fee for paper bills and notices.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2022-05-12 - Introduced, Referred to Assembly Financial Institutions and Insurance Committee [A3960 Detail]
Download: New_Jersey-2022-A3960-Introduced.html
Sponsored by:
Assemblywoman ANNETTE QUIJANO
District 20 (Union)
SYNOPSIS
Prohibits insurers, SHBP, and SEHBP from charging fee for paper bills and notices.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning insurance billing practices and supplementing various parts of the statutory law.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. As used in this section:
"Commissioner" means the Commissioner of Banking and Insurance.
"Insurer" means:
(1) Any corporation, association, partnership, reciprocal exchange, interinsurer, Lloyd's insurer, fraternal benefit society, or other person engaged in the business of insurance pursuant to Subtitle 3 of Title 17 of the Revised Statutes or Subtitle 3 of Title 17B of the New Jersey Statutes;
(2) Any medical service corporation operating pursuant to P.L.1940, c.74 (C.17:48A-1 et seq.);
(3) Any hospital service corporation operating pursuant to P.L.1938, c.366 (C.17:48-1 et seq.);
(4) Any health service corporation operating pursuant to P.L.1985, c.236 (C.17:48E-1 et seq.);
(5) Any health maintenance organization established pursuant to the provisions of P.L.1973, c.337 (C.26:2J-1 et seq.);
(6) Any insurance plan operating pursuant to P.L.1970, c.215 (C.17:29D-1);
(7) The New Jersey Insurance Underwriting Association operating pursuant to P.L.1968, c.129 (C.17:37A-1 et seq.).
b. No insurer shall charge a fee to furnish tangible printed or paper bills or notices, with respect to any insurance policy, to an insured or other owner of that policy.
c. If the commissioner finds, after notice and hearing, that an insurer has a pattern and practice of charging a fee prohibited by this section, the commissioner may, after notice and hearing, order the payment of a penalty not to exceed $1,000 for each offense. Each instance of a fee prohibited by this section that is charged to an insured or other owner of that policy shall be a separate offense and subject to assessment of a separate penalty. Penalties assessed pursuant to this section shall be collected by the commissioner pursuant to the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.).
d. Nothing in this section shall prohibit an insurer from offering a discount, credit or other incentive to an insured for selecting a specific billing, payment or notification option.1
2. The State Health Benefits Commission shall not charge a fee to furnish tangible printed or paper bills or notices, with respect to any health plan included in the State Health Benefits Program to any member of the State Health Benefits Program.
3. The School Employees' Health Benefits Commission shall not charge a fee to furnish tangible printed or paper bills or notices, with respect to any health plan included in the School Employees' Health Benefits Program to any member of the School Employees' Health Benefits Program.
4. This act shall take effect on the 90th day next following enactment.
STATEMENT
This bill prohibits any insurer from charging a fee to furnish tangible printed or paper bills or notices, with respect to any insurance policy, to an insured or other owner of that policy. Insurance policies referred to under the bill include automobile insurance policies, homeowners policies, individual life and health insurance policies. In addition, the bill prohibits the State Health Benefits Commission and School Employees' Health Benefits Commission from charging a fee to furnish tangible printed or paper bills or notices to any member of the State Health Benefits Program or the School Employees' Health Benefits Program.
This bill ensures that an insured, or other owner of the policy, will not be charged an additional fee if the insured or other owner of the policy elects to receive tangible printed or paper bills or notices in place of digital access to the same. The bill does not prohibit an insurer from offering a discount, credit, or other incentive to an insured for selecting a specific billing, payment, or notification option.
