Bill > S2391

Introduced Session

This bill amends the "Motor Vehicle Security-Responsibility Law," to clarify that a violation of the "New Jersey Insurance Fraud Prevention Act" results in the loss of motor vehicle liability insurance coverage in certain circumstances, and that innocent persons who are injured have primary recourse under uninsured motorist coverage or from the Unsatisfied Claim and Judgment Fund. Specifically, the bill provides that whenever a person violates any provision of the "New Jersey Insurance Fraud Prevention Act," the carrier whose motor vehicle liability policy would otherwise provide coverage for that person or any innocent person that was injured, shall not be responsible for any loss or damage claimed by that person or by the innocent person, in situations in which the policy was voided due to a violation of the "New Jersey Insurance Fraud Prevention Act." The bill provides that an innocent person injured by a vehicle for which the applicable policy was voided for a violation of the "New Jersey Insurance Fraud Prevention Act" shall have primary recourse from the uninsured portion of any private passenger automobile insurance policy for which the innocent person is eligible for coverage or, if that policy was voided or if no such coverage exists, then from the Unsatisfied Claim and Judgment Fund in accordance with any applicable law. The bill also provides that an innocent person injured by a motor vehicle for which the applicable policy was voided due to a violation of the "New Jersey Insurance Fraud Prevention Act," whose primary recourse is the Unsatisfied Claim and Judgment Fund, shall not be subject to the verbal threshold requirements. The bill also provides that nothing in the bill shall be construed to interfere with or eliminate any cause of action the innocent person may have against the person who engaged in fraudulent conduct. The bill also makes technical changes, including the deletion of references to certain statutes that have been repealed.

Committee Categories

Joe Lagana (D)*, 

Introduced in the Senate, Referred to Senate Commerce Committee (on 03/24/2022)

Official Document