The State of New Jersey
NJ Department of Banking and Insurance
Home > Department Press Releases/Newsletters/Reports

News Release

New Jersey Department of
Banking and Insurance

Acting Commissioner Richard J. Badolato

For Immediate Release:
February 23, 2016

For Further Information:
Ed Rogan or Marshall McKnight (609) 292-5064

Christie Administration Alerts Insurance Brokers and Contractors 
That Falsifying Insurance Certificates is Insurance Fraud 

TRENTON -  The Christie Administration today alerted insurance agents, contractors and other interested parties in the State that falsifying certificates of insurance is now considered insurance fraud under the provisions of a new State law. 

The Certificates of Insurance Act, P.L. 2015, c.195, signed into law by Governor Chris Christie on January 11, makes providing or demanding the issuance of a certificate of insurance that contains any false or misleading information concerning property or casualty insurance coverage a violation of the New Jersey Insurance Fraud Prevention Act (“Fraud Act”), N.J.S.A. 17:33-4a(6).  Violations of the Fraud Act are punishable by civil and administrative penalties of up to $5,000 for a first violation, up to $10,000 for a second violation, and up to $15,000 for a third violation. The new law goes into effect on April 10.

“We are informing agents, brokers, insurance companies, contractors and any other parties who issue or use certificates of insurance that it is now a violation of State civil insurance fraud laws to request or provide false or misleading information in these documents,” said Department of Banking and Insurance Acting Commissioner Richard J. Badolato.

“Previously, unscrupulous actors were able to use fraudulent insurance certificates to falsely maintain they had liability coverage, and if a disaster or accident occurred, there was no insurance coverage. This law will be one more tool to prevent that and provide more protection to consumers.”

A certificate of insurance is a summary document usually issued by an agent on behalf of an insurer that says a property or casualty insurance policy has been issued to an insured for a certain type of risk.  The certificate is generally issued to the insured or a third party who wants some assurances that a policy covering certain property or casualty coverages has been issued. For example, these certificates are widely presented by contractors as proof they have the insurance coverage that is required by a prospective client, by contract, or by bidding requirements. 

The law specifies that a person who prepares, presents or causes to be presented to any insurer or other person, or demands or requires the issuance of, a certificate of insurance that contains any false or misleading information concerning the policy of insurance to which the certificate makes reference, or assists, abets, solicits or conspires with another to do any of these acts, has committed a violation of the Fraud Act.  Anyone who suspects they have been a victim of insurance fraud should: contact the Bureau of Fraud Deterrence at 609-292-7272 x 51088, or complete a complaint form online at:

OPRA is a state law that was enacted to give the public greater access to government records maintained by public agencies in New Jersey.
Adobe Acrobat
You will need to download the latest version of Adobe Acrobat Reader in order to correctly view and print PDF (Portable Document Format) files from this web site.
state seal
Copyright © 2011, State of New Jersey
New Jersey Department of Banking and Insurance