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

Summary

A Senate Commerce Committee statement to the Senate on Senate Bill No. 1404, State of New Jersey, dated June 8, 2026, reporting the bill favorably. The bill broadens the information a person or entity, such as an insurance carrier, may disclose to other parties about actual or potential insurance fraud, and the civil immunity covering those disclosures. It amends the "Insurance Information Practices Act" and the "New Jersey Insurance Fraud Prevention Act," expanding the definitions of "insurance-support organization" and "privileged information" and extending immunity to a cause of action "of any nature." New immunity covers reports to the Commissioner of Banking and Insurance, law enforcement, the National Association of Insurance Commissioners 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 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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