New Jersey law
Insurance Disputes Laws in New Jersey.
New Jersey insurance law includes the Unfair Claims Settlement Practices Act (N.J.S.A. 17:29B-4) with enforcement through the Department of Banking and Insurance. Under *Pickett v. Lloyd's* (131 N.J. 457 (1993)), New Jersey recognizes first-party common-law bad faith based on the lack of a "fairly debatable" basis for denial. The Consumer Fraud Act may also apply in specific contexts. New Jersey's auto insurance system is a choice no-fault/PIP regime with significant implications for both first-party PIP claims and third-party liability.
Last verified: 2026-04-17
State law
Key New Jersey Statutes
An insurer commits bad faith by denying benefits where the claim is not "fairly debatable." Damages include consequential damages beyond policy limits and, in egregious cases, punitive damages.
Prohibits specified unfair claim settlement practices. Enforcement through the Department of Banking and Insurance. No private cause of action under the UCSPA itself, but violations can support other claims.
All New Jersey auto policies include Personal Injury Protection (PIP) covering medical expenses, lost wages, and related costs regardless of fault. Standard minimum $250,000 medical PIP; basic policy options $15,000 medical PIP.
Policyholders who select the Limitation-on-Lawsuit option pay lower premiums but may only sue for pain and suffering if they sustain one of 6 enumerated "serious" injuries. "No Limitation" option preserves full tort rights.
State law
Official Sources
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This page summarizes publicly available statutes and rules for informational purposes only. It does not constitute legal advice, and no attorney-client relationship is created by viewing this content. Laws change — always verify with the primary source or consult a licensed attorney in New Jersey.
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