New Jersey: Senate Commerce Committee to Hear Bad Faith Bill June 11
The Senate Commerce Committee will take up bad faith legislation on Thursday, June 11 during a hearing scheduled to start at 10 a.m.
The bill, S-132, as originally drafted would have applied to a wide range of insurance claims. However, its sponsor, committee member Sen. Nicholas Scutari has been working on scaling down its scope and has reportedly met with the Department of Banking and Insurance in an effort to make the bill more palatable, or less objectionable. The version that is expected to be considered at this week’s hearing applies only to first-party auto insurance claims for uninsured motorist and uninsured motorist coverage.
NAMIC, which has been working with a coalition of interested parties opposing the bill throughout the legislative session, will submit testimony to the Commerce Committee stressing the negative effects of first-party bad faith legislation and citing NAMIC’s Public Policy Issue Analysis, First-Party Insurance Bad Faith Liability: Law, Theory, and Economic Consequence.
Direct questions to NAMIC State Affairs Manager Paul Tetrault.