N.J. REPAIRS CONTRACTORS' ACT:

Gov. James McGreevey signed legislation removing “inaccurate and ineffectual” provisions from the Contractor’s Registration Act, one day before the act was set to go into effect on Nov. 9. The move changes provisions that required written notice of cancellation or nonrenewal of a commercial general liability insurance policy by insurers to the director of the Division of Consumer Affairs, at least 10 days prior to cancellation or renewal. “If left untouched, the Contractor’s Registration Act would have required producers to issue certificates of insurance to contractors that were misleading and that would have misrepresented the terms of the commercial general liability policy”, said Richard Stokes, regional manager and counsel for the Property Casualty Insurers of America (PCI), which worked with agents and brokers groups to get the amendment passed. The amendment instead requires home improvement contractors to submit a copy of the cancelled or nonrenewed certificate of commercial general liability insurance to the Division of Consumer Affairs, before the original certificate of insurance expires to receive a new or replacement policy. In addition, it removed regulations that would have required home improvement contractors to register annually with the Division of Consumer Affairs and to file a certificate of insurance verifying a policy of commercial general liability of at least $500,000. The bill also changes the effective date of the Contractor’s Registration Act to Dec. 31, 2005.

Topics New Jersey Contractors