Garden State lawmakers recently approved rules that give insurance companies greater flexibility in their investments.
Signed by Gov. Jon S. Corzine earlier this month, the new law allows 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 – something not allowed until now. It also adds flexibility to the amounts insurance companies may invest through loans or investments.
The insurance industry welcomed the change. “New Jersey’s investment law was adopted over 20 years ago and was one of the most restrictive in the country,” Richard Stokes, regional manager for the Property Casualty Insurers Association of America, said in praising the new bill. “Over the years, the investment marketplace has changed and the old law prohibited insurers from being able to make some sound investments.”
Topics Legislation New Jersey
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