Bill
Bill > A5719
NJ A5719
Broadens scope of information sharing and civil immunity therefor, related to insurance fraud.
summary
Introduced
05/22/2025
05/22/2025
In Committee
05/22/2025
05/22/2025
Crossed Over
Passed
Dead
Introduced Session
2024-2025 Regular Session
Bill Summary
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.
AI Summary
This bill broadens the scope of information sharing and civil immunity related to insurance fraud detection and prevention. The legislation amends existing New Jersey laws to expand definitions and permissions for sharing personal and privileged information among insurance institutions, agents, insurance-support organizations, law enforcement, and other relevant entities. Key changes include modifying definitions to allow information sharing about any person or entity in an insurance transaction (rather than just individuals), expanding the circumstances under which privileged information can be disclosed, and providing broader civil immunity for information sharing. Specifically, the bill allows insurance-related organizations to share information with law enforcement, government authorities, and other parties involved in detecting or preventing criminal activity or insurance fraud, with protection from civil liability for such disclosures. The legislation aims to create a more comprehensive legal framework that facilitates information exchange to help combat insurance fraud, while maintaining protections against malicious or intentionally harmful disclosures. The changes will take effect four months after enactment, with the Commissioner of Banking and Insurance permitted to take preparatory administrative actions in advance.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced, Referred to Assembly Financial Institutions and Insurance Committee (on 05/22/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
Document Type | Source Location |
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State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/A5719 |
BillText | https://pub.njleg.gov/Bills/2024/A6000/5719_I1.HTM |
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