SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE, No. 3409

with committee amendments

STATE OF NEW JERSEY

DATED:  JANUARY 26, 2023

      The Senate Commerce Committee reports favorably and with committee amendments Senate Bill No. 3409.

      As amended, this bill amends the law concerning the foreign investments that an insurance company is permitted to make.  Under the bill, an insurance company may invest in securities, properties and other investments in foreign countries, in addition to those specified under current law, which are substantially of the same character as prescribed for authorized investments for funds of the insurance company, to an amount valued at cost, not exceeding in the aggregate at any one time 20% of the total admitted assets of the insurer as of December 31 next preceding; provided, however, that the amount invested pursuant to the bill in authorized investments, other than qualified foreign investments, does not exceed in the aggregate, at any one time, 5% of admitted assets; and that the amount invested in authorized investments in any one foreign country pursuant to the bill does not exceed in the aggregate, at any one time, 10% of the admitted assets.

      As amended and reported, this bill is identical to Assembly Bill No. 4785 (1R).

COMMITTEE AMENDMENTS:

      The committee amended the bill to replace the existing provisions of the bill with provisions permitting insurance companies to invest in securities, properties and other investments in foreign countries, in addition to those specified under current law, under certain circumstances.