The New Jersey State Senate and Assembly recently approved legislation that will require auto insurance companies to disclose policy coverage details, including available limits of coverage, to victims injured in auto accidents. The legislation will allow claimants and their attorneys to obtain basic policy information, upon request, from potentially liable parties and their insurers.
Under the current law, insurance companies are not required to disclose policy details until after a lawsuit is filed, which needlessly slows down the court system and clogs court calendars. Under the new proposed law, insurance companies must disclose policy limits to the attorney for the injured party within 30 days from receipt of a written request. The disclosure has to indicate the limits of all auto policies that might apply, along with any applicable umbrella or excess liability insurance policies issued by the insurance company to the insured.
While the disclosure must remain confidential and is available only to individual injured parties and the attorney representing them, it is designed to give critical policy information to claimants on a much more expedited basis that previously existed.
The legislation, which was spearheaded by Senator Nicholas Scutari, now awaits only the signature of Governor Murphy to become law.
The lawyers at Starkey, Kelly, Kenneally, Cunningham, Turnbach & Yannone will continue to monitor developments in the law to keep our clients advised of their rights.