In a recent OpEd on NJ.com, two former insurance commissioners of states where similar bills became law detailed the damage done by the legislation.
“The unintended consequences and premium increases that result from this type of “bad faith” legislation will do more harm than good for New Jersey consumers,” writes Tom Gallagher and Jane Cline, the former insurance commissioners in Florida and West Virginia, respectively.
The authors state that a similar policy resulted in an auto insurance crisis in West Virginia, which ended when its governor ceased the private cause action for third-party bad faith litigation. They also wrote of multiple independent studies which determined Florida consumers have paid billions more in premiums over the past decade as a result of this “bad faith” legislation.
To learn more about the New Jersey “bad faith” insurance proposal, visit here.