Legislative Alert:

'Bad faith' is bad policy for New Jersey

NJLRA strongly opposes S-2460, which will be heard by the Senate Commerce Committee on Monday, March 4th. 

If enacted, S-2460 would create a new cause-of-action for policyholders to file suit against insurers for 'bad faith.'   Proponents argue that this bill will help those who have been affected by Superstorm Sandy by codifying existing case law.  In reality, this legislation creates a new cause of action beyond current case law and threatens to add uncertainty and greater consumer costs to New Jersey's homeowners' insurance market:
  • Very few victims of Sandy will be helped.  Those who lacked flood coverage, had inadequate coverage limits, or could not afford their deductible could not file suit under this bill.
  • Policyholders would be able to recover damages in excess of the terms of their insurance contract.  In addition, they would be able to file for attorneys' fees, court costs, and prejudgment interest dating to the time the suit was filed.   
  • All New Jersey insurance customers, including businesses which purchase commercial insurance, will pay higher insurance premiums as a result. 

OPPOSE S-2460 in the Senate Commerce Committee 
Monday, March 4th, 1:00 p.m. 
Committee Room 6, Statehouse Annex 

Read more about NJLRA's opposition here.


Please contact us for more information.

Template Logo

Blog Link Image
Join Us Image
Contact info 1
Contact info 2
Contact info 3
Find us on Facebook
Follow us on Twitter

Bottom Line Follow us

Know someone who is concerned about lawsuit abuse?

Invite others to join NJLRA.  You can or direct them to our website.