NJ A3667

Amends the Dental Service Corporation Act of 1968 to allow dental service corporations to become subsidiaries of nonprofit holding companies or other nonprofit parent entities that are not themselves dental service corporations

Dental service corporations that become subsidiaries must continue to comply with all existing statutory requirements under the 1968 Act, including limitations on investments

Current law restricts dental service corporations from spending more than 10% of assets or 50% of surplus (whichever is less) on investments, which remains applicable to the subsidiary corporation

The change aims to allow nonprofit parents greater flexibility to invest funds and help their dental service corporation subsidiaries compete with larger health insurance companies offering dental services

Takes effect on the first day of the sixth month following enactment