Prohibits certain provisions in liability insurance policies.

S 986 prohibits New Jersey liability insurers from including policy clauses that deny coverage for claims based on similarity to unrelated incidents. Specifically, it bans provisions allowing insurers to refuse payment for a claim simply because a similar fact, circumstance, or event occurred in a separate, unrelated case (e.g., denying medical malpractice coverage due to a prior unrelated incident). This directly affects insured individuals and businesses by ensuring coverage isn't denied for unrelated similarities. The bill takes effect immediately for policies issued or renewed after enactment, applying to all liability insurance in New Jersey. It targets "interrelated wrongful act clauses" that previously let insurers avoid liability based on unrelated prior events.