In New Jersey, a “Rova Farms” claim arises from the Supreme Court case of Rova Farms Resort, Inc. v. Investors Ins. Co. of America, 65 N.J. 474 (1974). There, the New Jersey Supreme Court held that an insurer’s bad-faith failure to settle a claim within the policy limits could ultimately leave the insurer on the hook for the entire judgment, even if it exceeds the policy limits...
On January 18, 2022, Governor Phil Murphy signed The New Jersey Fair Conduct Act, allowing policyholders to pursue a private cause of action against their insurance company when the insurer unreasonably delays or denies uninsured (UM) / underinsured (UIM) motorist claims.
Under the new law, an insured individual claiming UM/UIM benefits may now file a civil lawsuit against their insurance company if the company...
On January 10, 2022, just before the conclusion of the 219th New Jersey Legislature, The New Jersey Insurance Fair Conduct Act (S1559/A1659) squeaked through both houses and now sits on the desk of Governor Phil Murphy.
The new law establishes a private cause of action for first-party claimants regarding certain unfair or unreasonable practices by their insurer. It continues to be hotly contested by the insurance industry...