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NJ Bad Faith Bill Would Hurt Insurance Market, Critics Say

Law360, New York (February 28, 2013, 8:47 PM EST) -- New Jersey lawmakers will consider a bill Monday that would expressly allow policyholders to sue insurance companies for bad faith in resolving claims, a move opponents argue will create a wave of insurance litigation in the state and raise premiums across the board.

The eventual fate of the bill, S. 2460, is uncertain, but the battle lines have already been starkly drawn heading into Monday's hearing, when the Senate Commerce Committee will consider the measure.

While supporters generally argue that the legislation would provide important fixes for claimants struggling with bad faith conduct by their insurers, critics say the legislation would...

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