Signed by Governor Phil Murphy

Vote Smart's Synopsis:

Vote to pass a bill that amends the process to identify and streamline worker misclassification.

Highlights:

• Defines "Bureau" as the Bureau of Fraud Deterrence (Sec. 3).

• Defines "Commissioner" as the Commissioner of Banking and Insurance (Sec. 3).

• Specifies a person is guilty of violating this act if they prepare or make any written or oral statement, intended to be presented to any insurance company or producer to obtain the following:(Sec. 4):

• A motor vehicle insurance policy, that the person to be insured maintains a principal residence in this State when, in fact, that person's principal residence is in a state other than this State; or

• An insurance policy, knowing that the statement contains any false or misleading information concerning any fact or thing material to an insurance application or contract.

• Establishes a person, organization, or business violates the provisions of this act if such person, organization, or business purposely or knowingly (Sec. 4.g):

• Makes a false or misleading statement, representation, or submission, including failing to properly classify employees in violation of state wage, benefit and tax laws, to evade the full payment of insurance benefits or premiums; or

• Coerces, solicits, or encourages, or employs, contracts, or otherwise conspires with a person to coerce, solicit, or encourage, any individual to make a false or misleading statement, representation, or submission concerning any fact that is material to a claim for insurance benefits, or the payment of insurance benefits or insurance premiums, to wrongfully obtain the benefits or of evading the full payment of the insurance benefits or insurance premiums.

• Establishes whenever the commissioner determines that a person has violated any provision of this act, the commissioner may either (Sec. 5.a):

• Bring a civil action; or

• Levy a civil administrative penalty and order restitution.

• Requires the commissioner to assess a civil and administrative penalty of $5,000 for the first violation, $10,000 for the second violation, and $15,000 for each subsequent violation and will order restitution to any insurance company or other person who has suffered a loss as a result of a violation (Sec. 5.c).

• Authorizes the Bureau and Office to consult the Department of Labor and Workforce Development to assist with the investigation of the failure to properly classify employees in violation of any provision of State wage, benefit, and tax laws to wrongfully obtain the benefits or of evading the full payment of the insurance benefits or insurance premiums (Sec. 9.a-1).

• Specifies nothing in this law may prevent the furnishing by the director to the Commissioner of Banking and Insurance of any information, including, but not limited to, tax information statements, reports, audit files, returns, or reports of any investigation to assist in investigations according to any insurance fraud investigation as enumerated (Sec. 6.s).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that amends the process to identify and streamline worker misclassification.

Highlights:

• Defines "Bureau" as the Bureau of Fraud Deterrence (Sec. 3).

• Defines "Commissioner" as the Commissioner of Banking and Insurance (Sec. 3).

• Specifies a person is guilty of violating this act if they prepare or make any written or oral statement, intended to be presented to any insurance company or producer to obtain the following:(Sec. 4):

• A motor vehicle insurance policy, that the person to be insured maintains a principal residence in this State when, in fact, that person's principal residence is in a state other than this State; or

• An insurance policy, knowing that the statement contains any false or misleading information concerning any fact or thing material to an insurance application or contract.

• Establishes a person, organization, or business violates the provisions of this act if such person, organization, or business purposely or knowingly (Sec. 4.g):

• Makes a false or misleading statement, representation, or submission, including failing to properly classify employees in violation of state wage, benefit and tax laws, to evade the full payment of insurance benefits or premiums; or

• Coerces, solicits, or encourages, or employs, contracts, or otherwise conspires with a person to coerce, solicit, or encourage, any individual to make a false or misleading statement, representation, or submission concerning any fact that is material to a claim for insurance benefits, or the payment of insurance benefits or insurance premiums, to wrongfully obtain the benefits or of evading the full payment of the insurance benefits or insurance premiums.

• Establishes whenever the commissioner determines that a person has violated any provision of this act, the commissioner may either (Sec. 5.a):

• Bring a civil action; or

• Levy a civil administrative penalty and order restitution.

• Requires the commissioner to assess a civil and administrative penalty of $5,000 for the first violation, $10,000 for the second violation, and $15,000 for each subsequent violation and will order restitution to any insurance company or other person who has suffered a loss as a result of a violation (Sec. 5.c).

• Authorizes the Bureau and Office to consult the Department of Labor and Workforce Development to assist with the investigation of the failure to properly classify employees in violation of any provision of State wage, benefit, and tax laws to wrongfully obtain the benefits or of evading the full payment of the insurance benefits or insurance premiums (Sec. 9.a-1).

• Specifies nothing in this law may prevent the furnishing by the director to the Commissioner of Banking and Insurance of any information, including, but not limited to, tax information statements, reports, audit files, returns, or reports of any investigation to assist in investigations according to any insurance fraud investigation as enumerated (Sec. 6.s).

Full Bill Text