Senate Commerce Committee Statement — Senate Bill No. 1404 (New Jersey, June 8, 2026)

Summary

Senate Commerce Committee Statement to Senate, No. 1404, State of New Jersey, dated June 8, 2026, reporting favorably Senate Bill No. 1404. The bill broadens the scope of information a person or entity, such as an insurance carrier, may disclose to other parties related to actual or potential insurance fraud, and the scope of the related civil immunity. It expands the definitions of “insurance-support organization” and “privileged information” and extends existing immunity to a cause of action “of any nature.” It also establishes a new immunity under the “New Jersey Insurance Fraud Prevention Act” for reports to, or information exchanged with, the Commissioner of Banking and Insurance, law enforcement including the Office of the Insurance Fraud Prosecutor, and the National Insurance Crime Bureau.

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     SENATE COMMERCE COMMITTEE

                    STATEMENT TO

                  SENATE, No. 1404

 STATE OF NEW JERSEY
                       DATED: JUNE 8, 2026

    The Senate Commerce Committee reports favorably Senate Bill
No. 1404.
    This bill broadens the scope of information a person or entity, such
as an insurance carrier, may disclose to other parties related to actual
or potential insurance fraud, and the scope of the related civil
immunity covering the person’s or entity’s distribution of that
information. The bill concerns information disclosure practices related
to insurance fraud, with the intent of strengthening State and insurance
industry efforts to hamper fraudulent activities.
    To that end, the bill amends and supplements the State statutes
governing insurance information practices, P.L.1985, c.179
(C.17:23A-1 et seq.), popularly referred to as the “Insurance
Information Practices Act,” and the “New Jersey Insurance Fraud
Prevention Act,” P.L.1983, c.320 (C.17:33A-1 et seq.). Specifically,
the bill:
    -Expands the definition of “insurance-support organization”
regarding insurance information practices, to permit any such
organization to collect and report information about any person or
entity in connection with an insurance transaction, going beyond the
current scope as expressed in the definition, which focuses only on
information collecting and reporting concerning an individual insured,
applicant, or claimant;
    -Similarly expands the definition of “privileged information”
regarding insurance information practices, to indicate that such
information may relate to any person or entity concerning an insurance
transaction;
    -Modifies the scope of permitted information disclosures with
respect to insurance information practices, so that an insurance carrier,
among other insurance institutions, or an agent or insurance-support
organization may disclose privileged information (as defined above)
about a person or entity in connection with, or in reasonable
anticipation of, an insurance transaction, to: 1) another insurance
institution, agent, or insurance-support organization; 2) any other
person or entity involved in detecting or preventing criminal activity or
insurance fraud; or 3) a law enforcement or other governmental
authority;
    -Expands the existing immunity provided to any person or entity
for disclosing information, as well as the existing immunity associated
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with the mandatory reporting requirements and information
furnishings set forth under the “New Jersey Insurance Fraud
Prevention Act,” to apply to a cause of action “of any nature,” instead
of the current law’s more limited immunity against causes of action in
the nature of defamation, invasion of privacy, or other related actions;
and
    -Establishes a new, similarly expansive immunity under the “New
Jersey Insurance Fraud Prevention Act” relating to making reports to,
or providing information to, or receiving information from: 1) the
Commissioner of Banking and Insurance, or any employee, agent, or
representative of the commissioner, including the Bureau of Fraud
Deterrence; 2) federal, State, or local law enforcement, including the
Office of the Insurance Fraud Prosecutor, or other governmental
authority; 3) any person performing a business, professional, or
insurance function concerning the detection or prevention of criminal
activity, fraud, material misrepresentation, or material nondisclosure
which violates the provisions of the “New Jersey Insurance Fraud
Prevention Act”; 4) the National Association of Insurance
Commissioners, a national nonprofit organization which assists state
insurance regulators, individually and collectively, in serving the
public interest and achieving insurance regulatory and market goals; or
5) the National Insurance Crime Bureau, a national nonprofit
organization dedicated to preventing, detecting, and eliminating
insurance fraud.
    By establishing a legal framework for the greater flow of
information between the insurance industry and law enforcement, as
well as among various parties within the insurance industry, the bill
intends to strengthen the efforts of the Office of the Insurance Fraud
Prosecutor and the insurance industry to thwart fraudulent activities.
    This bill was pre-filed for introduction in the 2026-2027 session
pending technical review. As reported, the bill includes the changes
required by technical review, which has been performed.


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