On January 18, 2022, Governor Phil Murphy signed The New Jersey Insurance Fair Conduct Act into law to be effective immediately.
The Act creates a private cause of action for claimants who are injured in a motor vehicle collision against their own insurance company if they are entitled to Uninsured (“UM”) or Uninsured (“UIM”) Motorist coverage.
(Feel free to check out our prior blog posts for more information on UM/UIM Motorist coverage.)
This means a claimant may file a lawsuit against their own insurance company (yeah you read that right) for “an unreasonable delay or unreasonable denial of a claim for payment of benefits.”
The claimant may also bring a claim for a violation of the New Jersey Unfair Claims Settlement Act (N.J.S.A. 17:29B-4), which deals with unfair methods of competition and unfair and deceptive acts or practices.
Is this happening to you? Need help making sense of this? Email us here or give us a call at 973 742 1917.
Any lawyers wishing to learn more about this new Act and it’s possible ramifications are welcome to attend my upcoming lecture for the New Jersey Institute for Continuing Legal Education. You can register on the NJICLE website here.
By: Michael Raff, Esq.Posted by raffadmin Posted on 25 Mar