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A 5450

Establishes the advanced coursework expansion incentive grant program

2025 Regular Session Introduced by Harry Bronson and 3 co-sponsors

Establishes a state-regulated, self-funded homeowners insurance plan with broad insurer participation, prioritizing flood risk coverage.

REFERRED TO EDUCATION
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Bill Summary · A 5450

Summary of New Jersey Assembly Bill A-5450

Introductions and Status

  • Bill number: A 5450
  • Title per bill information: Establishes the advanced coursework expansion incentive grant program
  • Status: Referred to Education (Legislative actions list shows multiple referrals; introduced March 17, 2025)
  • Introduced: March 17, 2025
  • Primary sponsor: Brian Cunningham
  • Co-sponsors: Alicia Hyndman, Landon C. Dais, Harry B. Bronson
  • Related bill: S 6725 (companion)

Note: The textual content provided for the “Introduced Version” describes a homeowners insurance plan and what appears to be a different policy area than the stated title about an advanced coursework expansion incentive grant program. The summary below follows the introduced text’s substantive provisions. The mismatch between the stated bill title and the introduced content should be clarified in committee briefing.

Purpose and Context (as indicated by the introduced text)

  • The bill establishes a state-regulated plan to provide homeowners insurance to individuals who cannot obtain coverage through ordinary channels, with particular emphasis on properties at risk of flooding.
  • It mandates broad participation: every insurer admitted to transact in New Jersey must participate and provide coverage as required by the plan’s rules.

Key Provisions

1) Establishment of a homeowners insurance plan
- The Commissioner of Banking and Insurance must promulgate rules to create a plan ensuring homeowners insurance is available to applicants who cannot secure it normally, prioritizing flood risk.
- Plan governance: A plan’s governing board exercises administrative authority under commissioner oversight, including investigating complaints and hearing appeals. Appeals decisions are final orders of the plan and reviewable by the Superior Court; not treated as contested cases under the Administrative Procedure Act.

2) Definition
- “Homeowners insurance” encompasses standard forms of homeowners coverage (fire, extended coverage, dwelling, homeowners multiple peril, vandalism/theft, liability, or combinations), as approved by the commissioner.

3) Plan design and rate regulation (Section 2)
- Rating system: Rates for each coverage must be adequate for the plan’s safeness and soundness, not excessive, and not unfairly discriminatory within similar hazard profiles. Rates can be filed with the commissioner and updated as needed.
- Financial sufficiency: Rates charged to plan insureds must cover plan expenses and losses on an incurred basis, with actuarially sound loss reserves.
- Distribution system: The plan may use a limited assignment distribution system allowing insurers to transfer applicants/insureds to other insurers or qualified entities.
- Subsidies: The plan must be self-funded; no subsidies from external sources.

4) Administration and consultation
- Before adopting or amending rules, the commissioner must consult with insurance industry stakeholders (beyond standard required public notice/hearing).

5) Reporting
- The plan’s governing body must annually report to the Legislature and the Governor, including an actuarial analysis of rate adequacy for each coverage.

Effective Date

  • The act states it shall take effect immediately.

Affected Parties

  • Homeowners who struggle to obtain coverage, particularly flood-impacted properties.
  • All insurers admitted in New Jersey (participation required).
  • The state regulatory apparatus (Commissioner of Banking and Insurance, plan governing board, and the Legislature/Governor through annual reports).

Procedural and Timeline Considerations

  • Immediate effect on implementation via rulemaking by the Commissioner.
  • Ongoing annual reporting and actuarial review.
  • Consultation with industry prior to rule adoption/amendment.

Observations

  • The bill’s current text focuses on creating a no-subsidy, actuarially sound homeowners insurance plan with broad insurer participation and an appeals process, rather than anything related to an advanced coursework expansion incentive grant program. A clarification of the intended bill title versus content would aid in public understanding.

Compiled from official sources — confirm details with the bill’s official record.

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