LEGAL PERSPECTIVE
by MITCHELL H. PORTNOI, ESQ.
UM/UIM New Rights After many years of significant efforts by the New Jersey Association for Justice and other consumer groups, New Jersey Governor Murphy finally signed the Insurance Fair Conduct Act. The Act provides a first-party cause of action against insurance companies when they unreasonably delay, deny or underpay legitimate claims in uninsured or underinsured motorist cases. For those of you who may not know, UM (uninsured motorist coverage) benefits are those that are paid to a driver or passenger in an automobile when a phantom (or unidentified) vehicle or an uninsured vehicle causes injury or damage to a person in an insured vehicle. UIM (underinsured motorist coverage) is that which protects a person in the instance of bodily injury or property damage when the at-fault party lacks sufficient coverage. For years, insurance companies in New Jersey have not had to promptly pay on these claims to their first party insureds because there was no reason to pay these claims quickly and promptly. If they waited long enough, perhaps their insureds died or had other accidents making those claims less valuable. There was no downside to the insurance company waiting it out or offering significantly less than the actual value of the case. Why was that? Because no damages were accrued to the company
over and above the actual coverage that the insured had. For instance, if an insured had a $100,000 available UIM claim against their own insurance company for a claim which ultimately received a verdict of $1 million, the most the insurance company would ever have to pay was the $100,000. The Insurance Fair Conduct Act puts teeth into trial counsel insistence that the insurance company pay fair and adequate settlements to an uninsured or underinsured party when appropriate. The greatest enhancement is the expectation of treble (triple) damages, attorney fees as well as damages and costs if the company violates the Fair Practices Act. The law states: In addition to the enforcement authority provided to the Commissioner of Banking and Insurance pursuant to the provisions of P.L.1947, c.379 (C.17:29B-1 et seq.) or any other law, a claimant may, regardless of any action by the commissioner, file a civil action in a court of competent jurisdiction against its insurer for: (1) an unreasonable delay or unreasonable denial of a claim for payment of benefits under an insurance policy; or continued on pg. 37
The Law Office of Mitchell H. Portnoi Decades of Experience in Personal Injury and Workers’ Compensation
The Law Office of Mitchell H. Portnoi is centrally located in Mountainside, New Jersey. Our Firm concentrates on handling cases throughout Northern and Central New Jersey. We specialize in serious motor vehicle accidents, slip and fall injuries, work-place accidents and workers’ compensation cases. We have recovered millions of dollars for our clients throughout our combined years practicing law; which are a million reasons why you should retain the attorneys at The Law Office of Mitchell H. Portnoi, P.C.! MITCHELL H. PORTNOI is a Certified Civil Trial Attorney, certified by the New Jersey Supreme Court licensed to practice in New Jersey and New York.
Services including:
KYLE S. REED is an Associate in the Firm, licensed to practice law in New Jersey in 2018. Kyle has already litigated numerous cases to a verdict or towards a favorable resolution for the clients he has represented.
To Schedule a Free Consultation: Call 908-228-8800 and ask for either Mitchell H. Portnoi or Kyle
S. Reed, or contact our office online at mportnoi@portnoilaw.com or kreed@portnoilaw.com. Many people worry about the cost of hiring an attorney to represent them in their personal injury or workers’ compensation cases. We will charge you no attorney’s fee unless we recover a settlement for you. The Law Office of Mitchell H. Portnoi P.C. 1199 US-22, Suite 301 | Mountainside, NJ 07092 | (908) 228-8800 | Fax (908) 228-8115 | www.portnoilaw.com
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