McKeon’s Bill Would Require More Info From Insurance Companies

ESSEX COUNTY, NJ — Assemblyman John McKeon is putting his weight behind a bill that would require insurance companies to provide New Jersey officials more information about their corporate structures.

McKeon, who represents the state’s 27th District (Essex and Morris counties), said that A-6007 seeks to bring insurers in New Jersey into compliance with accreditation standards set by the National Association of Insurance Commissioners (NAIC).

The proposed law would require insurance companies to file a confidential corporate governance annual disclosure to New Jersey’s Commissioner of Banking and Insurance.

The Assembly Financial Institutions and Insurance Committee unanimously approved the bill on Thursday. It now goes to the Assembly Speaker for further review.

McKeon, chair of the Assembly Financial Institutions and Insurance Committee, said that moving forward with the legislation ensures that New Jersey is “doing its due diligence” to comply with the NAIC Corporate Governance Annual Disclosure Model Act, which has already been adopted in 44 other states across the country.

“The bill would provide for insurers to file a confidential disclosure, in a format at their discretion, addressing their corporate governance structure, policies and practices,” McKeon said.

“In doing so, this tool would allow New Jersey’s Department of Banking and Insurance to monitor the growing regulatory needs of our institutions and to understand the current practices being employed for critical risk areas have appropriate oversight,” McKeon added.

The deadline to pass the measure, ensuring New Jersey insurers and insurance groups maintain accreditation standards, is Jan. 1, 2020, McKeon said.

The 27th District includes the municipalities of Caldwell, Chatham Township, East Hanover, Essex Fells, Florham Park, Hanover, Harding, Livingston, Madison, Maplewood, Millburn, Roseland, South Orange and West Orange.

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