Bill
Bill > A3240
NJ A3240
NJ A3240Provides that contracts between subscribers and attorney in fact are not a related party transaction.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill amends the law concerning reciprocal insurance and interinsurance contracts. The bill provides that contracts between subscribers and the attorney in fact, and any fees charged pursuant to those contracts or arising out of those contracts, are not to be considered a related party transaction.
AI Summary
This bill clarifies that contracts between subscribers and their attorney in fact, along with any associated fees, will not be considered a "related party transaction" under New Jersey law concerning reciprocal or interinsurance contracts. Reciprocal and interinsurance contracts are a type of insurance where individuals or entities agree to exchange insurance coverage with each other, managed by an "attorney in fact" who acts on their behalf. The bill specifically amends existing law to ensure that these arrangements, which are a core part of how these insurance contracts operate, are not subject to regulations or restrictions that apply to transactions between closely connected parties, thereby streamlining the operations of these specialized insurance providers.
Committee Categories
Business and Industry
Sponsors (3)
Last Action
Introduced, Referred to Assembly Financial Institutions and Insurance Committee (on 01/13/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/A3240 |
| BillText | https://pub.njleg.gov/Bills/2026/A3500/3240_I1.HTM |
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