PCI Praises New N.J. Insurance Bill

A trade group for insurance companies is lauding the passage of a New Jersey bill that gives companies greater flexibility in the types of investments they can make.

The new law, passed earlier this month, expands domestic property and casualty insurance companies’ authority to invest in corporations that have not paid dividends during the preceding five years, as well as foreign entities.

The bill also adds flexibility to the amounts insurance companies may invest through loans or investments, and provides requirements allowing companies to adopt written plans for acquiring and holding investments.

“New Jersey’s investment law was adopted over 20 years ago and was one of the most restrictive in the country,” said Richard Stokes, regional manager and counsel for the Property Casualty Insurers Association of America. “Over the years, the investment marketplace has changed and the old law prohibited insurers from being able to make some sound investments.”

Source: PCIAA