Jul 17, 2018

Bad-faith bill introduced in state Assembly

A bill, A-4293, which would establish a private cause of action for consumers regarding certain unfair or unreasonable practices by insurers, was introduced in the state Assembly at the end of June.

The bill, titled the New Jersey Insurance Fair Conduct Act and sponsored by Assemblywoman Annette Quijano, D-20, would allow consumers to bring a private cause of action against insurers for an unreasonable delay or denial of a claim for payment of benefits under an insurance policy. A similar version of the bill was passed by the Senate last month.

PIANJ actively worked to guarantee that insurance producers would be excluded from the Senate bill and would not be brought into suits for actions they had no control over. These efforts were successful when an amendment was added to the bill prior to passage that specifically excluded producers from the definition of insurers that is found in this bill.

PIA is pleased to report that the language found in the Assembly version mirrors that found in the Senate, meaning that producers are specifically excluded from the bill. The Assembly bill has been referred to the Assembly Financial Institutions and Insurance Committee for consideration.