NEWS

Disclosure of Automobile Insurance Policy Limits to Attorneys Now Mandatory Under Certain Circumstances

October 21, 2021

ALVIN H. KIM reports that pursuant to Governor Phil Murphy’s signed legislation, the New Jersey Department of Banking and Insurance issued an Order requiring insurers of private passenger automobile insurance in New Jersey to disclose an insured’s policy limits to an attorney under certain circumstances. This Order further requires all private passenger automobile insurers to submit email addresses to the New Jersey Department of Banking and Insurance, through which they will receive disclosure requests.

You can read the Order here: https://www.state.nj.us/dobi/orders/a21_11.pdf.

An attorney’s request for the disclosure of an insured’s policy limits must be in writing and include: (A) a statement that the attorney represents an individual who was injured as a result of a motor vehicle accident with an insured covered under a private passenger automobile insurance policy issued by the insurer; (B) the name and last known address of the insured; (C) the date and time of the accident; (D) a copy of the accident report, when available; and (E) a statement from the claimant or the claimant’s attorney providing the claimant’s insurance information, including the claimant’s insurer, policy number, policyholder name, tort threshold selection, and personal injury protection coverage limit. Insurers must comply with the appropriate written demand for disclosure of an insured’s policy limits within thirty days from receipt of the request. This applies even if a lawsuit has not yet been commenced.

The minimum amount of New Jersey auto insurance coverage, required by law, is $15,000 per person/$30,000 per incident/$5,000 for property damage. Prior to the Department of Banking and Insurance’s Order, if an auto insurer refused to disclose their insured’s policy limits, injured victims were initially left in the dark about whether they would need to put their own insurance company on notice for a potential underinsured motorist claim. Knowledge about an insured’s policy limits may now streamline the initial litigation process during the period when the injured victim’s injuries and medical treatment are of utmost importance.

For any questions you have concerning this article, please contact Alvin H. Kim at alvinkim@kozyrahartz.com or by calling 973-740-1550.