Your elected officials are currently considering legislation that would dramatically broaden the standard to prove “bad faith” when you have a disagreement with your insurer over uninsured and uninsured motorist (UM/UIM) coverage.
This will lead to an increased number of lawsuits being filed in UM/UIM cases and companies will settle for artificially higher payout amounts in an attempt to avoid the potentially significant jury awards this legislation could lead to. The unintended consequence of this bill would be an increase in the cost of UM/UIM coverage, which is a coverage included in all Standard automobile insurance policies.
Couched as consumer protection, this bill disregards the fact that New Jersey has strong laws and regulations* that protect consumers when they have a dispute with their insurer. Read More Here