SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE, No. 754

STATE OF NEW JERSEY

DATED: JUNE 3, 1996

      The Senate Commerce Committee reports favorably Senate Bill No. 754.

      This bill provides that the "New Jersey Insurance Fraud Prevention Act" will apply to the self-insurance funds and joint self-insurance funds of municipalities, counties and school boards and to the New Jersey State Health Benefits Program. Currently, the Division of Insurance Fraud Prevention cannot act on complaints of fraud concerning these self-insurance funds.

      The Division of Insurance Fraud Prevention in the Department of Insurance is currently financed by assessing property and casualty insurers and life and health insurers. The bill provides for the assessment of these self-insurance funds for the division's expenses.