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Capitol Report: Senate Committee Approves Bill Requiring Properly Named Defendants in UM/UIM Cases

By Tom Nobile posted 3 hours ago

  
The Senate Commerce Committee passed S3173 (Scutari/Bramnick), which requires defendants, including insurance companies named as defendants, to be properly identified in certain causes of action. The NJ State Bar Association opposes this bill because of the prejudice to juries. 
“If the intent is to permit an insurance company to be identified in a cause of action to determine liability in an underlying accident, the Association cautions that such a broad determination would be prejudicial,” the NJSBA said in a written statement to the Senate Commerce Committee members. “Currently, the existence of an insurance defendant, let alone the name of the insurance company defendant, is typically shielded from a jury to reduce the potential of jurors relying on irrelevant information of insurance coverage when determining the underlying liability of the accident against the actual tortfeasor who may have insurance company.” 
During testimony from those opposed to the bill, witnesses pointed out that the insurance company is not the tortfeasor so there can be no liability against an insurance company. “Nevertheless, when the jury is handed the question of liability, knowledge of insurance coverage could change the focus of the juror’s task from ‘Was the tortfeasor liable for the accident?’ to ‘Can the tortfeasor afford to pay the damages from the accident because the tortfeasor has insurance?’ The latter is entirely inappropriate.” 
Sen. Jon Bramnick, a co-prime sponsor of the bill, said that the aim of the bill is to allow an insured to make the proper claim against the insured’s carrier. 
The bill was amended to be limited only to uninsured and underinsured motorist claims and to clarify that the law would apply to those pending and new claims made at the time of the effective date of the bill. It remains in second reading in the Senate and does not have an Assembly companion bill. 
Nursing Home Transparency Bill Clears Senate Committee
The Association submitted support for S2980 (Vitale), which revises reporting requirements for nursing homes concerning financial disclosures and ownership structures. 
The bill was introduced following a 2025 report from the NJ Office of the Comptroller which investigated two nursing homes and found a pattern of “mismanagement, self-dealing and profiteering” through deceptive financial arrangements with related party interests between owners of nursing homes and the owners of third-party vendors providing services to the nursing homes. According to the report, tens of millions of dollars in Medicaid funds were diverted from resident care to the owners of these entities. 
“This bill will increase transparency in these situations by expanding the required disclosures for applicants seeking to transfer the ownership of nursing home,” the NJSBA said. The bill removes a provision that allows applicants for transfers of ownership to omit proprietary information and any information that can be used in an adverse licensure or disciplinary action against the applicant. It also strengthens enforcement tools for compliance with these disclosures and expands the state comptroller’s role in overseeing and auditing owner-certified financial statements. 
The bill is in second reading in the Senate. It remains pending in the Assembly Aging and Human Services Committee. 
Bill to Expand Family Leave Act for Bereavement for the Death of a Child and Other Circumstances Clears Assembly Committee
The NJSBA supports A2198 (Speight), which establishes protected leave under the Family Leave Act and family temporary disability leave benefits for bereavement for the death of a child, miscarriage, stillbirth and other circumstances. 
“This legislation reflects the evolving ways in which families are formed and acknowledges the unique challenges many individuals face in the process of building families,” the Association said. 
The legislation would allow employees up to 21 days leave immediately following a qualifying loss when the circumstance would not otherwise qualify for other forms of leave, or up to seven days when the employee is otherwise eligible for disability or family leave benefits.
“Many families experience heartbreaking setbacks on the path to parenthood, whether through miscarriage, unsuccessful fertility treatments, or a planned adoption that does not come to fruition,” said the bill’s prime sponsor, Assemblywoman Shanique Speight. “By recognizing these experiences in our leave policies, we acknowledge the emotional toll they take and ensure workers have the support they need during incredibly difficult moments.”
The bill was referred to the Assembly Appropriations Committee and remains pending in the Senate Labor Committee. 
Bill to Prohibit Selection of Health Insurance Coverage as Primary Clears Senate Committee
The Senate Commerce Committee passed S3142 (Scutari/Bramnick) which would prohibit the selection of health insurance coverage as primary under personal injury protection. The NJSBA supports the bill as an efficient resolution for litigants.  
“By prohibiting the selection of health insurance coverage as primary, this bill reduces billing conflicts and fee schedule disputes that frequency lead to unnecessary, prolonged litigation,” the Association said.  
The bill is in second reading in the Senate. There is no Assembly companion.

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