Governor Signs Singer Bill to Increase Cap on Annuity Payouts

Today, Governor Murphy signed bipartisan legislation sponsored by Senator Robert Singer (R-30) to increase the payout figure for annuity products held by insolvent insurance companies.

“Thanks to the hard work of the Legislature and now the Governor, consumers in New Jersey’s insurance industry can rest easy knowing that their life savings are more secure,” said Sen. Singer. “The insurance industry provides safeguards for consumers holding certain annuity investments, but a safety net of $100,000 doesn’t go as far as it used to. By increasing the payout cap to $250,000, more money is being protected to help improve New Jerseyans’ retirement peace of mind.”

When an insurance company fails, state guaranty associations step in to take over their invested assets in a process known as receivership and a certain amount of protected benefits can then be paid out to policyholders with life insurance policies and annuities.

Senator Singer’s bill (S-3371), now law, will enable the New Jersey Life and Health Guaranty Association to payout up to $250,000 to annuity policyholders.

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