Support for Mandatory Disclosure of Insurance Policy Limits to Claimants and their Attorneys - New Jersey Assembly Bill 4028/Senate Bill 2429
If passed by the General Assembly and signed into law, Assembly Bill A4028 would require insurance companies to disclose the automobile insurance coverage limits of their insured to attorney's representing parties presenting claims payable under said policies. This Bill would be extremely helpful in curtailing wasteful litigation and streamlining the resolution of personal injury claims. The current practice in New Jersey, permits insurers to refuse to disclose policy details, thereby preventing injured parties from making informed decisions regarding their claims. For example, discovering that a tortfeasor’s policy offers minimal coverage only after filing a lawsuit creates unnecessary and economically unjustified litigation; undermines the parties’ incentives to settle pre-suit; and impinges on accident victim’s right to know whether those responsible for their injuries will be able to make them whole.
Other states, such as New York, have already adopted similar statutes that require the disclosure of auto insurance policy information and have allowed litigants to make better decisions about their claims earlier on as a result.
Read the letter PDF file here.
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To Whom it May Concern:
I am writing to express my support for Assembly Bill A4028 which would require insurance companies to disclose the automobile insurance coverage limits of their insured to attorney's representing parties presenting claims payable under said policies. As a licensed attorney in New Jersey who frequently represents car accident victims, I believe this Bill would be extremely helpful in curtailing wasteful litigation and streamlining the resolution of personal injury claims. The current practice in New Jersey, where insurers may refuse to disclose policy details, prevents injured parties from making informed decisions regarding their claims. For instance, discovering that a tortfeasor’s policy offers minimal coverage only after filing a lawsuit creates unnecessary and economically unjustified litigation; undermines the parties’ incentives to settle pre-suit; and impinges on accident victim’s right to know whether those responsible for their injuries will be able to make them whole.
Other states, such as New York, have already adopted similar statutes that require the disclosure of auto insurance policy information and have allowed litigants to make better decisions about their claims earlier on as a result.
I therefore urge you to support this bill through the Financial Institutions and Insurance Committee’s review and ultimately before an Assembly vote.
Thank you for your diligent attention to this matter.