The “New Jersey Insurance Fair Conduct Act”, S2144/A3850, would allow New Jersey residents to take their insurance companies to civil court for "an unreasonable delay or unreasonable denial of a claim for payment of benefits under an insurance policy." This punitive approach to settling claims in a subjective manner does not benefit you, the policyholder. Rather, it opens the door to an exponential amount of lawsuits, many frivolous, that drive up costs for everyone.
According to a recent report by Milliman Inc., allowing claimants new, direct civil actions against insurers would likely have a variety of adverse effects:
· Premiums for all property-casualty insurance policyholders could increase by $2.5 billion in New Jersey.
· Medical malpractice and commercial liability insurance rates could increase by 21 percent.
· Bodily injury auto liability rates for commercial and personal policies could increase by as much as 20-40 percent.
· Homeowners insurance rates could increase by 17 percent.
· Greater incentives for insurance fraud.
· Higher premium rates could result in reduced affordable options for consumers.
· There could be possible delays in claim settlements.
Tell your lawmaker to oppose S2144/A3850, today!