New Jersey Governor Phil Murphy, who has been sworn in for a second term, has signed into law some legislation to allow policyholders to sue their auto insurers for as much as three times the applicable coverage amount.
SB 1559, also known as the New Jersey Insurance Fair Conduct Act (IFCA), will allow injured parties to file lawsuits against their insurer for “an unreasonable delay or unreasonable denial” of an insurance claim. It also allows policyholders to sue their insurer if they believe the company violated the New Jersey Unfair Claims Settlement Practices Act (UCSPA), which governs “unfair methods of competition and unfair and deceptive acts or practices in the business of insurance.”
