Governor Murphy’s SFY 2025 detailed budget recommendations for the Department of Banking and Insurance (DOBI) total $85.3 million, which is a decrease of $5 million or 5% from the 2024 allocation of $90.3 million. For more on the Governor’s overall budget proposal, please see our SFY 2025 Budget writeup.
The?Budget and Language recommendations?remain?unchanged from the previous year, highlighting direct state services for SFY 2025 for management of financial resources to support NJ Banking and Infrastructure pending the approval of the Director of the Division of Budget and Accounting.
Below is a review of DOBI’s budget.
Consumer Protection Services: The recommended allocation for Consumer Protection Services is$18.9 million. The Department of Consumer Protection Services (CPS) duties include licensing or registering non-depository consumer lenders, residential mortgage lenders and brokers, servicing companies, student loan servicers, pawnbrokers, money transmitters, and check cashers and is also responsible for the review and development of regulations.
Actuarial Services: DOBI’s Actuarial Services recommended allocation for SFY 2025 is a decrease of 19.7% from SFY 2024 from $30.3 million to $25.3 million for. The Actuarial Services Division reviews rates, rules, and policy forms related to property, liability, and title insurance. It also examines policy and other insurance forms for individual and group accidents, health, life, and annuities and ensures compliance with relevant laws and regulations; evaluates premium rates and loss ratios for health insurance.
Regulation of the Real Estate: The NJ Real Estate Commission (REC) is recommended to receive level funding of $3.6 million for SFY 2025. The REC Ensures members comply with existing statutes and regulations; investigates and resolves complaints; conducts hearings on violations and improper practices; registers and regulates out-of-state land sales. The REC also inspects brokers’ offices, examines, and licenses brokers and salespeople, and maintains a directory of licensees.
Public Affairs, Legislative, and Regulatory Services: DOBI’s Public Affairs Division is recommended to receive a level allocation of $2.3 million for SFY 2025. DOBI issues regulations and drafts bulletins, orders, public notices, and legislation. Serves as the Department's point of contact with the Legislature, the Governor's office, other government agencies, and the media. They also track legislation and legal issues impacting the regulation of the insurance, banking, and real estate industries.
Fraud Deterrence: The Bureau of Fraud Deterrence (BFD) is recommended to receive a level allocation of $23.1 million for SFY 2025. BFD conducts civil investigations, imposes penalties, and orders restitution to victim insurance carriers. It also engages in fraud prevention, outreach, and education.
Administration and Support Services: DOBI’s Administration and Support Services are set to receive level funding of $7.6 million for SFY 2025. The Administration and Support Services oversee DOBI’s activities and provide administrative and support services for all programs and projects.
Department Objective: The Department of Banking & Insurance (DOBI) regulates the banking, insurance, and real estate industries to protect and educate consumers while promoting growth, financial stability, and efficiency. DOBI’s goals include ensuring the solvency of financial institutions and insurance companies through regular examinations and analysis, protecting the public from unlawful practices, providing consumer assistance, investigating complaints, prosecuting violations, issuing licenses, reviewing insurance rates and policies, enforcing the New Jersey Insurance Fraud Prevention Act, and protecting student loan borrowers. The Department also ensures access to affordable health insurance through the State-based exchange.
These figures are based on the Governor’s proposal and may change based on public testimony, changes by the Legislature, and discussions with the Administration before its enactment by the end of June. The League will provide further updates as the budget process continues.