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Insurers Could Face More Bad Faith Suits if Legislation Passes

Legislation pending in New Jersey could make it easier to file bad faith lawsuits against insurers. The New Jersey Insurance Fair Conduct Act is currently under consideration by the Assembly Financial Institutions and Insurance Committee after having been passed by the Senate. If approved, SB 2144 would take effect immediately. Jack Vales, a partner in the Short Hills, N.J. office of Dentons US, and colleague, Erika Lopes-McLeman, a senior managing associate in the same office, issued a bulletin on the legislation recently. Under current law, if an insurer can show a debatable reason for a coverage decision, that will defeat any type of bad faith...

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