News Flash • Senate approves Singer bill to increase cap on

The New Jersey State Senate has approved a bill sponsored by Senator Robert Singer (R-30) that would increase the payout amount for annuity products from insolvent insurance companies.

“Certain annuities provide a safe investment alternative even if an insurance company fails and becomes insolvent. The New Jersey Life and Health Guaranty Association provides a significant safety net that protects investors by insuring up to $100,000 for annuities,” said Senator Singer. “By raising the payout cap on insolvent insurance company annuity investments to $250,000, this bill will help improve the retirement security of many New Jerseyans.”

If an insurance company becomes insolvent, government guarantee associations step in and take over the invested assets in a process known as insolvency. Life insurance and pension policyholders can then be paid a certain amount of the protected benefits.

Under current law, the New Jersey Life and Health Guaranty Association can pay annuity members up to $100,000, which is the maximum coverage the association offers.

Senator Singer’s bill S-3371 would increase the payout cap to $250,000.

To speak with Senator Singer, please contact Chris Sivel, SRO Deputy Director of Communications at (email protected).