Bill Text: NJ S4326 | 2026-2027 | Regular Session | Introduced
Bill Title: Prohibits insurers from using credit history when evaluating homeowners insurance policies.
Sponsorship: Partisan Bill (Democrat 2)
Status: (Introduced) 2026-05-21 - Introduced in the Senate, Referred to Senate Commerce Committee [S4326 Detail]
Download: New_Jersey-2026-S4326-Introduced.html
Sponsored by:
Senator BRIAN P. STACK
District 33 (Hudson)
SYNOPSIS
Prohibits insurers from using credit history when evaluating homeowners insurance policies.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning credit history and homeowners insurance policies and supplementing Title 17 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. An insurer or insurance producer shall not:
a. Deny, cancel, refuse to renew, or raise the premium of a homeowners insurance policy, or provide a higher premium than the insurer or insurance provider would otherwise provide, in whole or in part on the basis of an insured's or applicant's credit history;
b. Use an insured's or applicant's credit history as a factor, in whole or in part, when assessing an insured's or an applicant's risk level regarding:
(1) the provision or removal of a discount;
(2) assigning the insured or applicant to a rating tier; or
(3) placing an insured or applicant with an insurance agent; or
c. Use an insured's or applicant's credit history to evaluate in whole or in part, an insured's or applicant's eligibility for certain payment plans.
2. This act shall take effect 90 days after the date of enactment.
STATEMENT
The bill prohibits insurers from using an individual's credit history when determining homeowners insurance premiums.
Insurers currently use credit-based insurance scores, which are based on an individual's credit history, in the process of determining premiums. This can lead to homeowners with lower scores being charged higher premiums for coverage. This bill intends to make obtaining homeowners insurance equitable for residents in this State by removing the use of credit history in homeowners insurance premiums determinations.
