ASSEMBLY FINANCIAL INSTITUTIONS AND INSURANCE COMMITTEE

STATEMENT TO

ASSEMBLY, No. 3240

STATE OF NEW JERSEY

DATED:  JUNE 4, 2026

      The Assembly Financial Institutions and Insurance Committee reports favorably Assembly Bill No. 3240.

      This bill amends the law concerning reciprocal insurance and interinsurance contracts.  The bill provides that contracts between subscribers and the attorney in fact, and any fees charged pursuant to those contracts or arising out of those contracts, are not to be considered a related party transaction.

      This bill was prefiled for introduction in the 2026-2027 session pending technical review.  As reported, the bill includes the changes required by technical review, which has been performed.