A 3255 — Broadens scope of information sharing and civil immunity therefor, related to insurance fraud.

A3255 1R [First Reprint] ASSEMBLY, No.

Assemblyman DAN HUTCHISON District 4 (Atlantic, Camden and Gloucester)  Assemblyman   CODY  D.   SYNOPSIS      Broadens scope of information sharing and civil immunity therefor, related to insurance fraud.

MILLER District 4 (Atlantic, Camden and Gloucester) Assemblyman  ANTHONY ANGELOZZI District 8 (Atlantic and Burlington)   CURRENT  VERSION  OF  TEXTSYNOPSIS      IntroducedBroadens Pendingscope Technicalof Reviewinformation bysharing Legislativeand Counsel.civil immunity therefor, related to insurance fraud.

  CURRENT VERSION OF TEXT      As reported by the Assembly Public Safety and Preparedness Committee on March 19, 2026, with amendments.

     9.  a.  (1)  Any person who 1reasonably1 believes that a violation of [this act] P.L.1983, c.320 (C.17:33A-1 et seq.) has1[has beenbeen] may have been1 or is being made shall notify the bureau and the Office of the Insurance Fraud Prosecutor immediately after discovery of the alleged violation of [this act] P.L.1983, c.320 (C.17:33A-1 et seq.) and shall send to the bureau and office, on a form and in a manner jointly prescribed by the commissioner and the Insurance Fraud Prosecutor, the information requested and such additional information relative to the alleged violation as the bureau or office may require.  The bureau and the office shall jointly review the reports and select those alleged violations as may require further investigation by the office for possible criminal prosecution, and those that may warrant investigation and possible civil action or enforcement proceeding by the bureau in lieu of or in addition to criminal prosecution.  The bureau and office may consult, as necessary, the Department of Labor and Workforce Development to assist with the investigation of the failure to properly classify employees in violation of any provision of State wage, benefit and tax laws as defined in section 1 of P.L.2009, c.194 (C.34:1A-1.11) for the purpose of wrongfully obtaining the benefits or of evading the full payment of the insurance benefits or insurance premiums.  The Insurance Fraud Prosecutor and the assistant commissioner shall meet monthly to ensure that reports are handled in an expedited fashion.

     (2)   Whenever the Bureau of Fraud Deterrence or any employee of the bureau obtains information or evidence of a reasonable possibility of criminal wrongdoing not previously known or disclosed to the Office of the Insurance Fraud Prosecutor, the bureau shall immediately refer that information or evidence to that office.office.  In determining whether a referral to the office is appropriate, the bureau shall utilize appropriate levels of internal review, which shall include but not be limited to approval at the assistant commissioner level.  Upon referral, the bureau shall provide the office with all documents related to the referral consistent with section of P.L.1998, c.21 (C.17:33A-23).

In determining whether a referral to the office is appropriate, the bureau shall utilize appropriate levels of internal review, which shall include but not be limited to approval at the assistant commissioner level.

Upon referral, the bureau shall provide the office with all documents related to the referral consistent with section of P.L.1998, c.21 (C.17:33A-23).

P.L.2021, c.167, s.4)        6.    (New section)   section) a.  a.         In addition to the civil immunity provided to a person by subsection b.

of section of P.L.1983, c.320 (C.17:33A-9), a person shall also be immune from any civil liability and not subject to a cause of action of any nature for making a report or otherwise providing information to, or receiving information from, any of the following, when any party involved in the information sharing 1reasonably1 believes that a violation of the “New Jersey Insurance Fraud Prevention Act,” P.L.1983, c.320 (C.17:33A-1 et seq.), has(C.17:33A-1 et seq.), 1[has beenbeen] may have been1 or is being made:

     (2)   This section shall not provide any immunity to any person for disclosing or furnishing false information with 1bad faith,1 malice 1, recklessness, fraud,1 or willful intent to injure another person.         7.    This act shall take effect on the first day of the fourth month next following enactment, except that the Commissioner of Banking and Insurance may take any anticipatory administrative action in advance thereof as shall be necessary for the implementation of this act.

STATEMENT        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.