SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE, No. 3371

with committee amendments

STATE OF NEW JERSEY

DATED:  JUNE 10, 2024

      The Senate Commerce Committee reports favorably and with committee amendments Senate Bill No. 3371.

      As amended, this bill revises the limits for net cash surrender and net cash withdrawal values for certain annuity policies and contracts from $100,000 to $250,000 and makes the change effective immediately.

      Under the bill, the New Jersey Life and Health Guaranty Association will pay a policyholder of an annuity policy or contract up to $250,000 for any net cash surrender or net cash withdrawal that a policyholder makes on an annuity issued by a member insurance company that becomes insolvent.  Current law only allows the association to pay a policyholder up to $100,000 for a net cash surrender or net cash withdrawal made on an annuity issued by a now-insolvent member insurance company. 

COMMITTEE AMENDMENTS

      The committee amended the bill to make its provisions effective immediately upon enactment.