A 3240 New Jersey General Assembly · 2026-2027 Regular Session

Provides that contracts between subscribers and attorney in fact are not related party transactions.

This bill (A 3240) amends New Jersey's insurance law to clarify that contracts between insurance policyholders ("subscribers") and their appointed attorneys in fact (who manage their insurance affairs), along with any fees from these contracts, are not considered "related party transactions." It directly affects insurance subscribers and their designated attorneys in fact by removing these agreements from a specific regulatory category. The key provision explicitly states such contracts shall not be construed as related party transactions under state law, preventing them from being subject to additional oversight typically applied to such deals. This change ensures these insurance arrangements are governed solely by the existing reciprocal insurance statute, not other insurance regulations.

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2026

Committee Review

Jun 2026

General Assembly Passage

Jun 2026

Senate Passage

Governor

Introduced Jan 13, 2026 Last action Jun 30, 2026

Maddy AI version diff · 1 comparison

What changed between versions

Technical Review Of Prefiled Bill → Introduced · 5 edits · Jan 13, 2026

MODERATE

This diff reflects administrative and sponsorship changes as Bill A3240 moved from a technical review version to its introduced version. Assemblywoman Bagolie was removed as a sponsor, Assemblyman Freiman was removed as a co-sponsor, and a new STATEMENT section was added at the end summarizing the bill's purpose. The underlying policy content - that contracts between subscribers and an attorney in fact are not related party transactions under reciprocal insurance law - remains unchanged.

TECHNICAL

Bill designation changed from 'A3240 TR' to 'A3240', removing the technical review label.

Assemblywoman Rosaura 'Rosy' Bagolie (District 27) was removed as a sponsor of the bill.

Co-sponsor list changed from 'Assemblymen Miller and Freiman' to just 'Assemblyman Miller', removing Freiman.

A new STATEMENT section was added at the end of the bill, explaining that it amends reciprocal insurance and interinsurance contract law to clarify that contracts between subscribers and the attorney in fact, and any fees charged under those contracts, are not related party transactions.

Status line changed from 'As reported by the Assembly Financial Institutions and Insurance Committee with technical review' to 'Introduced Pending Technical Review by Legislative Counsel.'

Floor votes

How they voted

This bill passed the General Assembly by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Jun 30, 2026

Lower · Passed

Passed by the Assembly (77-2-0)

lower

Jun 4, 2026

Lower · Passed

Reported out of Assembly Committee, 2nd Reading

lower

Jan 13, 2026

Introduced

Introduced, Referred to Assembly Financial Institutions and Insurance Committee

lower

3 primary · 2 co-sponsors