Requires certain disclosure of earned income by health insurance producers.

A4439

ASSEMBLY, No. 4439

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 24, 2026

Sponsored by:

Assemblyman� MICHAEL INGANAMORT

District 24 (Morris, Sussex and Warren)

SYNOPSIS

���� Requires certain disclosure of earned income by
health insurance producers.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning certain income earned by health insurance
producers and amending and supplementing chapter 22A of Title 17 of the Revised
Statutes.

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

���� 1.��� (New section) a.� An
insurance producer shall disclose to the purchaser, with any health insurance
vendor contract recommendation made by the producer to a purchaser of the
insurance, the
total annual revenue received by the
producer from each recommended vendor, pursuant to all contracts between the
vendor and the employer of the insurance producer.�
The disclosure shall
include revenue received by the producer from a third party to the contract
that is paid as a result of or in connection with the recommendation.

���� b.��� A
health insurance vendor shall certify, at least once during the year when a
contract is in effect between the vendor and a purchaser of the insurance, the
direct and indirect compensation that the vendor pays to an insurance producer,
including any producer who works on behalf of a public entity in the State, and
employees of the producer.

���� 2.��� Section 25 of P.L.2008,
c.38 (C.17:22A-41.1) is amended to read as follows:

���� 25.� a.� An insurance producer
licensed pursuant to P.L.2001, c.210 (C.17:22A-26 et al.) who sells, solicits,
or negotiates health insurance policies or contracts to residents of this State
shall notify the purchaser of the insurance, in writing, of the amount of any
commission, service fee, brokerage, or other valuable consideration
, direct
or indirect,
that the producer will receive as a result of the sale,
solicitation or negotiation of the health insurance policy or contract.� If the
commission, fee, brokerage, or other valuable consideration is based on a
percentage of premium, the insurance producer shall include that information in
the notification to the purchaser.

���� b.���
[
The
commissioner may specify, by regulation, the information that shall be provided
by an insurance producer in the notification to a purchaser of health insurance
and the procedure for providing the notification
]
�
The information to be shared
pursuant to subsection a. of this section shall be in accordance with section
202 of the �Consolidated Appropriations Act, 2021,� Pub.L.116-260 and, as
already required of plans regulated pursuant to the �Employee Retirement Income
Security Act of 1974,� 29 U.S.C.1001 et seq., shall be required for health
insurance plans regulated by the State
.

(cf: P.L.2008, c.38, s.25)������

���� 3.��� This act shall take
effect immediately and shall be applicable to health insurance vendor contracts
entered into on or after the date of enactment.

STATEMENT

���� This bill establishes
requirements to enhance disclosure of certain earned income by health insurance
producers.� Specifically, the bill requires that information already required
to be disclosed under State law is disclosed in accordance with federal law
requirements addressing direct and indirect compensation and, as already
required of plans regulated pursuant to ERISA, is required for health insurance
plans regulated by the State.� The disclosure is to include revenue received by
the producer from a third party to the contract that is paid as a result of or
in connection with the recommendation.

���� The bill also requires an
insurance producer to disclose, with any health insurance vendor contract
recommendation made by the producer to a purchaser of the insurance, the
total annual revenue received by the producer from each
recommended vendor, pursuant to all contracts between the vendor and the
employer of the insurance producer.
� Lastly,
a
health insurance vendor is to certify, at least once during the year when a
contract is in effect between the vendor and a purchaser of the insurance, the
direct and indirect compensation that the vendor pays to an insurance producer,
including any producer who works on behalf of a public entity in the State, and
employees of the producer.