An Inside Look at New Jersey’s new Policy Limits Disclosure Law

The New Jersey Senate recently passed a bill to help injured individuals make truly informed decision in the quest to obtain the proper compensation for injuries.  Known as S-2429, the bill passed the state Senate this past spring.  The bill mandates insurance providers reveal coverage limits on the policies of customers who are party to a claim for injury.  Once the request for disclosure relating to the claim is received, the insurer has a month’s time to respond in written form with the disclosure of the policy limits.  The request for disclosure must include a statement that the lawyer represents the individual injured in the accident involving another person insured by the provider, the name and address of the insured party, the police report and the details of the accident such as date, time, etc.  Senators Nellie Pou and Nicholas Scutari sponsored the bill.  Senator Chris Brown served as the co-sponsor of the new legislation.

The “Why” Behind the new Law

New Jersey law long mandated that those injured in auto accidents file a lawsuit to obtain compensation for damages before being able to learn the level of insurance coverage carried by the other driver.  The majority of auto accident injury cases end with an out-of-court settlement agreement, oftentimes eliminating the need for a trial.  At this point, you might be wondering why litigation is necessary to start with.  In plenty of cases, accident victims are told to move on with the lawsuit after settlement negotiations fail or when the case’s statute of limitations is set to expire.  However, mandating that nearly every auto accident victim file a lawsuit to learn of the other driver’s insurance policy limits for injuries causes a logjam in court scheduling.  Sadly, many such cases will never reach trial, making the quest for justice in cases that must be heard by the court that much longer and challenging.

The new law detailed above is designed to decrease the frequency of unnecessary court filings by enabling injury victims as well as their lawyers to obtain important case information without the premature filing of a personal injury lawsuit.  The bottom line is some such lawsuits are unnecessary.  Furthermore, the legislation makes it easier for accident victims and attorneys to work more effectively.  If the driver in the wrong lacks liability coverage, the injured party will understand he or she must make a claim with his/her auto insurance company through uninsured motorist coverage.  If the opposing driver’s liability auto insurance policy limit is insufficient to properly compensate the accident victim for the injuries and losses, the attorney will consolidate the claim against the insurance provider of the negligent driver and the injured party’s underinsured motorist coverage into one lawsuit.  This way, there is no need to worry about two distinct lawsuits or the potential need to amend a suit that is already taking place.

The new law Will Help Personal Injury Victims

The bottom line is an injured driver should have the ability to learn about the other driver’s auto insurance policy limits at the outset of the claims process.  Otherwise, the injured victim will not be able to make a truly informed decision pertaining to medical treatment.  After all, injuries from car accidents can lead to egregiously costly medical treatment, prescription medication and durable medical equipment.  If the injured party is aware of the fact that there is insufficient insurance coverage for medical bills, he or she will have some difficult decisions to make regarding the pursuit of medical care.  These victims deserve to have all the necessary information to make a prudent decision.

Just About Everyone Welcomes the new Law

The requirement for disclosure of policy limits is also beneficial to the medical care providers performing the medical procedures.  These individuals should be compensated for their work yet if the insurance money is not there, the bill might go unpaid.  Due to a recent state Supreme Court ruling, car accident victims are that much less likely to undergo expensive treatment when aware that the other driver’s auto insurance will not cover the entirety or part of the expense.

It is quite sad that an injured driver or rider would have to bypass essential medical treatment necessary for recovery or pay for that treatment with his or her own money.  It would be even worse if such decisions were made blindly due to the nuances of the law.  This is precisely why the bill detailed above was written.  The bill also facilitates legal processes for cases that make it to the courtroom by eliminating the congestion of completely unnecessary suits from the court calendar.  In short, the new legislation is welcomed by our attorneys and personal injury victims with open arms.

Contact Schibell & Mennie Today

If you or a loved one are involved in an auto accident, do not hesitate to ask for legal assistance.  Contact Schibell & Mennie at 732-774-1000 to schedule a no-cost consultation. Our legal team led by Richard Schibell will answer any question you may have and help you get the legal help that you deserve.

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