Getting into a car accident is always a stressful time, particularly if there were injuries or a lot of damage as a result. Unfortunately, having insurance does not always relieve that stress. Accident victims often have to go long times between the accident and receiving benefits from the insurance company that will help them cope. In New Jersey, a bill just passed the Senate that hopes to change that.
On June 7, 2018, the New Jersey State Senate passed the “New Jersey Insurance Fair Conduct Act” by a vote of 21-14. This is not the first time the New Jersey State Senate voted on a bill of its kind, but it is the first time it has passed.
The legislation deals with insurance companies and the policyholders that make a claim against them. When a policyholder files a claim with their own insurance company, the bill would hold insurance companies responsible for making payments for those claims within a reasonable time.
If it is found that the insurance company unreasonably denied a claimant benefits, this bill would also hold them liable for doing so. The bill does not provide any definition for what would be considered an unreasonable delay or an unreasonable denial.
“Too many accident victims have to wait far too long for their benefits,” says William Colarulo of Grungo Colarulo, “and too many are unfairly denied altogether. Thankfully this bill will help place pressure and accountability on insurance companies for unreasonable delays and denials of much needed claims.”
In addition to ensuring those involved in an accident would be provided insurance benefits quickly, the Act would also hold insurers responsible if they were to violate any provisions set forth in the New Jersey Unfair Claims Settlement Act. If an insurer were to violate any part of this Act, they would face much harsher penalties.
Included in those are prejudgment interest, reasonable attorney’s fees, and litigation expenses. Insurers would also face possible treble damages, which would allow the court to triple the amount of benefits to be paid to the motorist that had originally filed the claim.
