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Finally…New Jersey Policyholders Can Sue Their Insurance Companies for Unreasonable Delay or Denial of UM/UIM Benefits

Finally…New Jersey Policyholders Can Sue Their Insurance Companies for Unreasonable Delay or Denial of UM/UIM Benefits

Jun 14, 2022 | Personal Injury

What New Jersey Drivers Need to Know in 2022

Knowledge is power.

There’s no better way to improve your legal or financial situation than by arming yourself with as much information as possible. It gives you power over your life. It gives you control. It gives you the ability to change your circumstance.

That said, New Jersey drivers need to be aware of the game-changing new law that now benefits the individual over the insurance company regarding accident claims and Uninsured/Underinsured Motorist (UM/UIM) coverage.

What is Uninsured/Underinsured Motorist Coverage?

Simply put, UM/UIM coverage protects you and your passengers if another driver is at fault in an accident and the at-fault driver is not insured or does not have sufficient coverage to compensate you for your losses. It may also help cover your medical expenses and car repair costs.

You file these claims with your insurance provider, not the at-fault driver’s insurer. And your insurance company must act in good faith and fair dealing toward you – its paying customer. Sadly, many insurance companies were not holding up their end of the deal in handling and processing these claims. Many claims were unfairly and unnecessarily delayed or just denied altogether.

Enter The New “Bad Faith” Law to Protect Your Interests

For many years, insurance companies were privileged enough to be in a position where they did not have to worry about being accountable to the little guy – you. Unlike many New Jersey drivers, the insurers were well-aware that consumers had few options when it came to going up against their deep pockets. However, in 2022, that all changed. The playing fields are coming closer to being leveled, giving you, the policyholder, an advantage.

On January 18, 2022, New Jersey Governor Phil Murphy signed The Insurance Fair Conduct Act giving the insurance policyholder the right to sue their insurance company when it acts in “bad faith” concerning paying and/or processing a driver’s uninsured/underinsured claims. Under the new law, New Jersey steps closer to holding insurance companies accountable for unreasonable delays and denials in processing UM/UIM coverage claims.

A Convenient Analysis of NJ’s 2022 Bad Faith Statute

Read the Digest of The Insurance Fair Conduct Act.

You May Be Entitled to More Than Just Damages

The 2022 law provides a successful claimant proving an unreasonable denial or unreasonable processing times, not only with actual damages but interest, reasonable attorney’s fees, and reasonable litigation expenses. The new also law allows claimants to recover extra-contractual damages, up to three times the policy limit.

Moreover, it’s not only your insurance company that can be called on the court carpet. Insurers may include a variety of individuals and entities — individual adjusters, third-party administrators, and legal entities, to name a few.

Care for and Constant Communication with Our Clients

When a New Jersey driver, who makes a claim, deals with their insurance company, it can seem like a battle between David and Goliath.

The company may not be, in reality, “on your side.”

At the Law Firm of Salomon & Aquino, LLC, we’ve made our choice—we’re on yourside. We favor “David.”

You pay your premiums on time; shouldn’t you receive your coverage benefits the same way?

At Salomon & Aquino, LLC, we think you should. Do not hesitate to call our office at 973-278-1124 with your questions, or, if you prefer, you can reach out to us digitally. We’re committed to ensuring that you get the benefits you deserve as quickly and efficiently as possible.

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