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A5096 • 2026

Prohibits insurers from using credit history when evaluating homeowners insurance policies.

Prohibits insurers from using credit history when evaluating homeowners insurance policies.

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Onyema, Chigozie U.
Last action
2026-05-14
Official status
Introduced, Referred to Assembly Financial Institutions and Insurance Committee
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Prohibits insurers from using credit history when evaluating homeowners insurance policies.

Prohibits insurers from using credit history when evaluating homeowners insurance policies.

What This Bill Does

  • Prohibits insurers from using credit history when evaluating homeowners insurance policies.
  • Topic: Financial Institutions and Insurance Fiscal note: This bill has not been certified by OLS for a fiscal note.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-05-14 New Jersey Legislature

    Introduced, Referred to Assembly Financial Institutions and Insurance Committee

Official Summary Text

Prohibits insurers from using credit history when evaluating homeowners insurance policies.
Topic:
Financial Institutions and Insurance
Fiscal note:
This bill has not been certified by OLS for a fiscal note.

Current Bill Text

Read the full stored bill text 
A5096

ASSEMBLY, No. 5096

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MAY 14, 2026

Sponsored by:

Assemblyman� CHIGOZIE U. ONYEMA

District 28 (Essex and Union)

SYNOPSIS

���� Prohibits insurers from using credit history when
evaluating homeowners insurance policies.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning credit history and homeowners
insurance policies and supplementing Title 17 of the Revised Statutes.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� An insurer or insurance producer shall not:

���� a.���� Deny, cancel, refuse to renew, or raise
the premium of a homeowners insurance policy, or provide a higher premium than the
insurer or insurance provider would otherwise provide, in whole or in part on
the basis of an insured�s or applicant�s credit history;

���� b.��� Use an insured�s or applicant�s credit
history as a factor, in whole or in part, when assessing an insured�s or an
applicant�s risk level regarding:

���� (1)�� the provision or removal of a discount;

���� (2)�� assigning the insured or applicant to a
rating tier; or

���� (3)�� placing an insured or applicant with an
insurance agent; or

���� c.���� Use an insured�s or applicant�s credit
history to evaluate in whole or in part, an insured�s or applicant�s
eligibility for certain payment plans.

���� 2. �This act shall take effect
90 days after the date of enactment.

STATEMENT

���� The bill prohibits insurers
from using an individual�s credit history when determining homeowners insurance
premiums.

���� Insurers currently use
credit-based insurance scores, which are based on an individual�s credit
history, in the process of determining premiums.� This can lead to homeowners
with lower scores being charged higher premiums for coverage.� This bill
intends to make obtaining homeowners insurance equitable for residents in this
State by removing the use of credit history in homeowners insurance premiums
determinations.�