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NJ S1372

Bill

Status

Introduced

1/13/2026

Primary Sponsor

Joseph Lagana

Click for details

Origin

Senate

2026-2027 Regular Session

AI Summary

  • Violations of the New Jersey Insurance Fraud Prevention Act result in automatic voiding of motor vehicle liability insurance coverage, with insurers having no responsibility for losses claimed by the person who committed fraud.

  • Innocent persons injured in accidents involving vehicles with fraud-voided policies can seek compensation first through uninsured motorist coverage on their own auto insurance policy.

  • If no uninsured motorist coverage exists or the innocent person's policy was also voided, they may file claims with the Unsatisfied Claim and Judgment Fund.

  • Innocent persons whose only recourse is the Unsatisfied Claim and Judgment Fund are exempt from verbal threshold requirements that normally limit lawsuits for non-economic damages.

  • The bill takes effect 90 days after enactment and amends the Motor Vehicle Security-Responsibility Law (P.L.1952, c.173).

Legislative Description

Clarifies that violation of "New Jersey Insurance Fraud Prevention Act" results in loss of motor vehicle liability insurance coverage in certain circumstances; provides coverage for innocent persons in certain situations involving insurance fraud.

Commerce

Last Action

Introduced in the Senate, Referred to Senate Commerce Committee

1/13/2026

Committee Referrals

Commerce1/13/2026

Full Bill Text

No bill text available