Assemblymen Jeff Van Drew, Reed Gusciora & John F. McKeon

VAN DREW/GUSCIORA/MCKEON BILL REQUIRING AUTO INSURANCE NONRENEWAL NOTICES TO BE SENT CERTIFIED MAIL ADVANCES

(TRENTON) - Legislation Assemblymen Jeff Van Drew, Reed Gusciora and John F. McKeon sponsored to require auto insurance companies to send notices of cancellation or nonrenewal of insurance policies via certified mail to policyholders was released from the Assembly Financial Institutions and Insurance Committee today.

FOR RELEASE:
February 23, 2006

CONTACT:
Assemblyman Van Drew
(609) 381-6150 or 465-0700
Assemblyman Gusciora
(609) 292-0500
Assemblyman McKeon
(973) 275-1113
James Sverapa IV
(609) 292-7065

VAN DREW/GUSCIORA/MCKEON BILL REQUIRING AUTO INSURANCE NONRENEWAL NOTICES TO BE SENT CERTIFIED MAIL ADVANCES

(TRENTON) - Legislation Assemblymen Jeff Van Drew, Reed Gusciora and John F. McKeon sponsored to require auto insurance companies to send notices of cancellation or nonrenewal of insurance policies via certified mail to policyholders was released from the Assembly Financial Institutions and Insurance Committee today.

"Auto insurers should not be allowed to terminate coverage without first ensuring that policyholders receive notices of termination," said Van Drew (D-Atlantic/Cape May/ Cumberland). "A return receipt goes a long way in confirming that policyholders know and understand that their coverage has ended."

The measure (A-1027) would require a notice of cancellation or nonrenewal of auto insurance policies to be sent by certified mail with a return receipt for the policyholder to answer. The legislation also would require an insurer to have proof of postage showing the name and address of a policyholder before terminating coverage.

"Driving without insurance is a serious offense that could result in hefty fines and the repossession of a vehicle," said Gusciora (D-Mercer). "If an auto insurance company is going to terminate service, it is vital that both parties - the insurer and the policyholder - are aware that their relationship has ended."

"A return receipt confirms that both parties agree to the end of coverage," said McKeon (D-Essex). "Return receipts are a consumer-friendly way of letting policyholders confirm they are prepared for coverage to end."

The bill was approved 5 to 1. It now heads to the Assembly Speaker, who decides if and when to post it for a floor vote.

--30--