New Jersey's Insurance Fair Conduct Act Signed Into Law

Governor Phil Murphy of New Jersey has enacted an insurance bad faith statute for auto insurers. The "New Jersey Insurance Fair Conduct Act" creates a private right of action for first-party claimants who are subjected to unfair, discriminatory, or unreasonable practices by their insurer. The agreement was signed on January 18, 2022.

Under the law, a claimant can file suit against its automobile insurer and related parties” for:

–  An unreasonable delay or unreasonable denial of a claim for payment; 

–  Any violation of the provisions of section j4 of P.L. 1947, c. 379 (C.17:29B-4) [the New Jersey Unfair Claims Settlement Practices Act). 

For further information, please contact Kevin or kevin@kmckernan.com or 718-317-5007