Legislation that will result in consumers and businesses paying more for auto insurance due to litigation costs advanced in the Senate this week, 21-9.
The “New Jersey Insurance Fair Conduct Act,” also known as the “bad faith” bill, opposed by NJBIA, proposes to create a private cause of action for consumers regarding perceived unfair or unreasonable practices by insurers.
NJBIA Chief Government Affairs Officer Chrissy Buteas said, if enacted, bill S-1559 would open the floodgates for lawsuits that would be extremely costly for insurers to defend or settle. In testimony submitted to the Senate, Buteas noted the state Department of Banking and Insurance already has the authority to investigate unfair acts and claims by insurers.
“This bill will only enable unscrupulous counsel to target consumers with meritless lawsuits in the hopes of obtaining settlements from companies concerned about litigation costs,” Buteas said. “The end result will be consumers and businesses paying the price in the form of higher insurance premiums.”
Here’s how the Senate voted on the bill:
Sen. 1/28/2021 – 3RDG FINAL PASSAGE – Yes {21} No {9} Not Voting {10} – Roll Call
| Addiego, Dawn Marie – Yes | Bateman, Christopher – Not Voting | Beach, James – Not Voting | |
| Brown, Chris A. – Yes | Bucco, Anthony M. – No | Cardinale, Gerald – Not Voting | |
| Codey, Richard J. – Yes | Connors, Christopher J. – Not Voting | Corrado, Kristin M. – No | |
| Cruz-Perez, Nilsa I. – Yes | Cryan, Joseph P. – Yes | Cunningham, Sandra B. – Not Voting | |
| Diegnan, Patrick J., Jr. – Yes | Doherty, Michael J. – No | Gill, Nia H. – Yes | |
| Gopal, Vin – Yes | Greenstein, Linda R. – Yes | Holzapfel, James W. – No | |
| Kean, Thomas H., Jr. – No | Lagana, Joseph A. – Not Voting | Madden, Fred H., Jr. – Yes | |
| O’Scanlon, Declan J., Jr. – Not Voting | Oroho, Steven V. – No | Pennacchio, Joseph – No | |
| Pou, Nellie – Yes | Rice, Ronald L. – Yes | Ruiz, M. Teresa – Yes | |
| Sacco, Nicholas J. – Yes | Sarlo, Paul A. – Yes | Scutari, Nicholas P. – Yes | |
| Singer, Robert W. – No | Singleton, Troy – Not Voting | Smith, Bob – Yes | |
| Stack, Brian P. – Yes | Sweeney, Stephen M. – Yes | Testa, Michael L., Jr. – Yes | |
| Thompson, Samuel D. – No | Turner, Shirley K. – Not Voting | Vitale, Joseph F. – Yes |
Unless more information needs to be conveyed, I see this bill as a good thing. Consumers need improvement in abilities to challenge insurance companies (health, liability, property protection, etc) when necessary. If we are concerned about frivolous law suits being brought by unscrupulous attorneys, then we need to regulate attorneys. If they are bringing obviously frivolous and unfounded complaints, they should be responsible personally for legal fees which can’t be passed onto consumers.
Why didn’t 10 Senators not cast a vote? How many Senators are lawyers? the answers to these questions. are the insight to ( aka motive) of the legislation.
Just another way for the state to increase our auto insurance premiums. They should have all voted no.