The Don’t Touch My Insurance campaign is a perfect example of remembering the past or being doomed to repeat it.
Check out this video from the Insurance Council of New Jersey for a history lesson in what happens when markets are over-regulated.
NJBIA has joined the campaign to stop the bad faith bill because it would open the floodgates for lawsuits, fueling a jump in insurance premiums that would make New Jersey even less affordable than it already is.
S-2144/A-4293/3850 would rewrite the legal definitions of good faith and bad faith in a way that overzealous attorneys would be able to sue insurance companies for normal mistakes that occur in the ordinary course of business. The unfortunate reality for many companies, particularly good actors, is settling the case out of court often makes more financial sense — even if the defendant is convinced the case is winnable.
According to a study by the independent actuarial firm Milliman, the bill would increase insurance costs by as much as:
- 39 percent for both personal auto insurance and commercial auto insurance;
- 21 percent for Commercial Multi-Peril Liability; rates
- 22 percent for Commercial General Liability;
- 17 percent for Commercial Multi-Peril non-liability; and
- 17 percent for Homeowners’
For more information please visit the Don’t touch my insurance website.