A3240 • 2026

Provides that contracts between subscribers and attorney in fact are not related party transactions.

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Hutchison, Dan
Last action: 2026-06-30
Official status: Passed by the Assembly (77-2-0)
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Provides that contracts between subscribers and attorney in fact are not related party transactions.

What This Bill Does

Provides that contracts between subscribers and attorney in fact are not related party transactions.
Topic: Passed Assembly Fiscal note: This bill has not been certified by OLS for a fiscal note.

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

2026-06-30 New Jersey Legislature
Passed by the Assembly (77-2-0)
2026-06-04 New Jersey Legislature
Reported out of Assembly Committee, 2nd Reading
2026-01-13 New Jersey Legislature
Introduced, Referred to Assembly Financial Institutions and Insurance Committee

Official Summary Text

Provides that contracts between subscribers and attorney in fact are not related party transactions.
Topic:
Passed Assembly
Fiscal note:
This bill has not been certified by OLS for a fiscal note.

Current Bill Text

Read the full stored bill text

A3240 TR

ASSEMBLY, No. 3240

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman DAN HUTCHISON

District 4 (Atlantic, Camden and Gloucester)

Assemblywoman CAROL A. MURPHY

District 7 (Burlington)

Co-Sponsored by:

Assemblyman Miller

SYNOPSIS

���� Provides that contracts between subscribers and
attorney in fact are not related party transactions.

CURRENT VERSION OF TEXT

���� As reported by the Assembly Financial Institutions
and Insurance Committee with technical review.

��

An Act
concerning reciprocal insurance and interinsurance
contracts and amending P.L.1945, c.161.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� Section 1 of P.L.1945,
c.161 (C.17:50-1) is amended to read as follows:

���� 1.��� Individuals,
partnerships, trustees and all corporations of this State, herein designated�
"subscribers,"� are hereby authorized to exchange reciprocal� or
interinsurance contracts with each other and with individuals, partnerships,�
trustees and corporations of other States, districts, provinces and countries,�
for any or all of the kinds of business for which a company may be formed or�
authorized to transact under the provisions of chapter seventeen of Title 17
of� the Revised Statutes, except life insurance.

���� Such contracts and the
exchange thereof and such subscribers, their attorneys in fact and
representatives shall be regulated by this act, and by no� other statute of
this State relating to insurance,
including, but not limited to, R.S.17:27-1
et seq.,
except as herein otherwise provided.�
Such contracts between
subscribers and the attorney in fact and any fees charged pursuant to those
contracts or arising out of those contracts shall not be construed to be a
related party transaction.

(cf: P.L.1945, c.161, s.1)

���� 2.��� This act shall take
effect immediately.