NJ S2890

Insurers providing stop loss or excess risk insurance for small employer health benefits plans must give plan sponsors at least 90 days' written notice before cancellation or nonrenewal of the policy.

The notice format will be determined by the Commissioner of Banking and Insurance.

Stop loss insurance reimburses self-funded small employer health plans for catastrophic or unexpected expenses, requiring a per person attachment point of at least $20,000 or an aggregate attachment point of at least 125% of expected claims per plan year.

The law takes effect immediately and applies to policies issued or renewed 90 days or more after enactment.