NJ S986

Prohibits liability insurance companies in New Jersey from including policy provisions that deny coverage for claims simply because they are similar to facts or circumstances alleged in a separate, unrelated proceeding

Targets "interrelated wrongful act clauses" and "prior and pending proceeding clauses" that allow insurers to deny coverage based on similarity to unrelated cases

Defines "claim" as any demand for damages received by an insured or notice to an insurer of acts that may reasonably result in a demand for damages

Applies to all liability insurance policies issued or renewed after the bill's effective date

Would prevent scenarios such as medical malpractice insurers denying coverage for a claim solely because a similar incident occurred in an unrelated case