Clarifies the violation of "New Jersey Insurance Fraud Prevention Act" results in loss of motor vehicle liability insurance coverage in certain circumstances; provides coverage for innocent persons in certain situations involving insurance fraud.

This bill clarifies that violating New Jersey's Insurance Fraud Prevention Act (P.L.1983, c.320) voids a motorist's liability insurance coverage. It directly affects individuals who commit insurance fraud and their victims. If fraud invalidates a policy, the insurer won't cover the fraudulent driver or their victims - but innocent people injured by that driver retain primary access to their own uninsured motorist coverage or the Unsatisfied Claim and Judgment Fund. Crucially, victims using the fund won't face the usual "verbal threshold" requirements for claims.