Blogs

    Court Finds Insurer Violated the NJ Consumer Fraud Act

    By: Melinda Martinson, Esq. on Nov 29, 2018

    The 3d Circuit Court of Appeals reversed a New Jersey Federal District Court decision on the issue of whether an insurer may be liable under the New Jersey Consumer Fraud Act (CFA). This auto liability case is contrary to others that have found the CFA does not apply to insurance policy disputes where coverage is denied. The appellate court distinguished those opinions based upon the egregious facts. An agent of the carrier represented to the injured plaintiff that she must sign papers to expedite her claim, but the papers were a general release of her claims. The federal appellate court anticipated that the New Jersey Supreme Court would find liability to deter and punish the deceptive insurance practice. It was confident that the highest New Jersey court would find that the CFA was intended to address fraud in connection with the performance of the insurance policy—a consumer contract. Insurers are on notice that consumers may use the CFA to fight fraudulent practices. Read the opinion.

    Released: November 29, 2018, 8:25 am
    Keywords: Announcements


    Copyright © 2018 . All Rights Reserved
    All material, files, logos and trademarks within this site are properties of their respective organizations.
    Terms of Use - Privacy Policy - Contact