The New Jersey Insurance Fair Conduct Act: Holding Insurance Companies Accountable
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BY DANIEL LEONE
On January 18, 2022, Governor Murphy signed the New Jersey Insurance Fair Conduct Act (“Act”) into law. The Act allows our clients to contest insurance bad faith claims in the handling and paying claims for uninsured/underinsured (“UM/UIM”) benefits.
Under the Fair Conduct Act, a claimant can sue their insurance companies if the carriers act in bad faith and deny, delay, or underpay legitimate claims in UM/UIM cases. In other words, the Act seeks to prevent insurers from imposing “unreasonable” delays or claims denials.
If an insurance company violates the Act, a claimant shall be entitled to: (1) actual damages caused by the violation of the Act, which includes actual trial verdicts that shall not exceed three times the applicable coverage amount; and (2) pre- and post-judgment interest, reasonable attorney’s fees, and all reasonable litigation expenses.
As a practical matter, insurance carriers have become more willing to resolve UM/UIM claims given the threat of the remedies under the Fair Conduct Act. We anticipate that this trend will continue. Brach Eichler Injury Lawyers will stay at the forefront of legal issues arising from the Act to protect our client’s interests.
Written by: Brach Eichler Injury Lawyers Last Updated : August 24, 2023The trial attorneys at Brach Eichler Injury Lawyers have decades of experience with personal injury litigation. We understand the difficulties accident victims experience. Our staff is especially skilled at dealing with medical providers and insurance companies to navigate these claims and allow you to focus on what is truly important - getting back to health.
If you have been injured in an accident, call us! We are here for you 24 hours a day. The consultation is free. You will not pay any fees unless we win your case, because here at Brach Eichler Injury Lawyers, it is all about getting results for you.