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.

S 1372 clarifies that violating New Jersey's Insurance Fraud Prevention Act (P.L.1983, c.320) voids a motorist's liability insurance coverage for claims related to that fraud. It directly affects individuals who commit insurance fraud (losing their coverage) and innocent people injured by those fraudsters (ensuring they retain protection). Key provisions require insurers to deny coverage for fraudulent claims but direct innocent victims to primary recourse through their own uninsured motorist coverage or the Unsatisfied Claim and Judgment Fund. Crucially, victims using the fund are exempt from standard "verbal threshold" requirements that typically limit claims for minor injuries. This bill ensures victims of fraud aren't left without recourse while penalizing fraudulent behavior.