New JerseyPeople sharing suspected insurance fraud reports would gain broader protections
People who reasonably suspect insurance fraud would have to report it, and those sharing related information with specified recipients could gain broader protection from lawsuits.
What it does
People who reasonably believe insurance fraud may have happened or is happening must report it to the state fraud bureau and prosecutor.
People may share information with specified agencies, law enforcement and insurance fraud investigators when they reasonably believe insurance fraud may have occurred. They receive civil protection unless they share false information in bad faith or to harm someone.
People who share insurance information as the law allows, or provide it to an insurer or related organization, would gain broader protection from civil lawsuits, with an exception for knowingly harmful false information.
Argument forBroader civil protections could help insurers, agencies and fraud investigators share information about suspected fraud more freely.
Argument againstPeople harmed by an inaccurate report might have fewer ways to sue when those sharing it reasonably believe insurance fraud may have occurred.
More detail
A person who reasonably believes insurance fraud may have happened or is happening must report it to the state fraud bureau and prosecutor. This applies to any person who reasonably believes there may have been a violation of New Jersey's Insurance Fraud Prevention Act. The report must be made immediately after discovery of the alleged violation. A person must report immediately after discovering the alleged violation.
A person may share information about suspected insurance fraud with specified state and federal agencies, law enforcement, insurance fraud investigators, and national insurance groups without civil liability. The listed recipients include insurance regulators, government and law enforcement agencies, people handling insurance fraud detection, the National Association of Insurance Commissioners, and the National Insurance Crime Bureau. The immunity does not cover false information shared in bad faith, with malice, recklessly, through fraud, or with intent to harm another person. Existing legal privileges and immunities remain in place.
A person who discloses insurance information as allowed by law, or provides it to an insurer or insurance-related organization, is protected from civil liability. The protection covers personal or privileged information connected with an insurance transaction. The protection does not cover false information disclosed or provided with malice or intent to harm someone.
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Where it stands
- Introduced
- Passed 1st Chamber
- Passed 2nd Chamber
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 28Received in the Senate, Referred to Senate Budget and Appropriations CommitteeLatest
- Jun 30Passed by the Assembly (77-0-0)Passed 1st Chamber
- Mar 19Reported out of Assembly Comm. with Amendments, 2nd ReadingMinor
- Jan 13Introduced, Referred to Assembly Financial Institutions and Insurance CommitteeIntroduced
Consumer ProtectionGovernment & EthicsPublic Safety