>BY DANIEL LEONE
On January 18, 2022, Governor Murphy signed into law the New Jersey Insurance Fair Conduct Act (“Act”). The Act allows our clients to make insurance bad faith claims in the handling and payment of claims for uninsured/underinsured (“UM/UIM”) benefits.
Under the Act, a claimant has a right to 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 denials of claims.
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 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 the interests of our client.
Written by: Brach Eichler Injury Lawyers Last Updated : March 21, 2023
