STATE OF NEW JERSEY
219th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2020 SESSION
Sponsored by:
Assemblywoman YVONNE LOPEZ
District 19 (Middlesex)
Assemblyman DANIEL R. BENSON
District 14 (Mercer and Middlesex)
Assemblywoman NANCY F. MUNOZ
District 21 (Morris, Somerset and Union)
SYNOPSIS
Requires automobile insurers to inform parties involved in automobile claim that they are not required to provide statement.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning automobile insurance and supplementing P.L.2003, c.89.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Every insurer writing private passenger automobile insurance in this State shall, as part of the investigation and adjudication of a claim involving one of its insureds, inform any party involved with the claim, other than the insured filing the claim, prior to any discussion of the claim with an involved party, that the party:
(1) is not required to provide a statement to the insurer; and
(2) may refer the insurer to the party's own insurer without providing a statement.
b. If the Commissioner of Banking and Insurance finds, after notice and hearing, that an insurer has a pattern and practice of failing to provide any of the information required by this section, the commissioner may, after notice and hearing, order the payment of a penalty not to exceed $1,000 for each offense. Each instance of a failure to provide information to an insured, an applicant or the commissioner, as the case may be, shall be a separate offense and subject to assessment of a separate penalty. Penalties assessed pursuant to this section shall be collected by the commissioner pursuant to the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.).
2. This act shall take effect immediately.
STATEMENT
This bill requires automobile insurers to inform any party to an automobile insurance claim, other than the insured filing the claim, that the party has no obligation to discuss the claim with the insurer. Furthermore, the bill provides that the insurer is required to inform any party to an automobile insurance claim, other than the insured filing the claim, that the person may refer the insurer to the person's own insurance provider.
The bill provides that, if the Commissioner of Banking and Insurance finds, after notice and hearing, that an insurer has a pattern and practice of failing to provide any of the information required by this section, the commissioner may, after notice and hearing, order the payment of a penalty not to exceed $1,000 for each offense.