Provides that limitation on lawsuit option does not apply in accidents caused by drunk or reckless drivers.
Impact
The proposed changes in SB467 directly affect the state's automobile insurance laws, particularly those that govern tort exemption clauses. By allowing for claims against negligent drivers who engage in particularly dangerous behavior, the bill seeks to enhance the rights of victims of such accidents to pursue compensation for pain, suffering, and other intangible losses. The adjustment will likely result in a higher number of claims progressing to court, particularly for cases involving alcohol-related offenses, thereby influencing how insurance providers manage liability and claims resulting from such incidents.
Summary
Senate Bill S467 amends existing New Jersey legislation concerning the limitation on the right to sue for noneconomic loss under certain automobile insurance policies. Specifically, the bill provides that individuals who choose to limit their lawsuit options, typically referred to as the 'verbal threshold', can still pursue claims for noneconomic damages if the accident involved a driver who was convicted of drunk driving, refused to take a breathalyzer test, or was guilty of reckless driving. This adjustment aims to hold reckless drivers accountable for their harmful actions even when plaintiffs have opted for limited recovery rights in their auto insurance coverage.
Contention
Notable points of contention surrounding SB467 may arise from insurance companies that support the limitation on lawsuits as a cost-control measure. These entities could argue that removing limitations in cases of severe negligence raises premiums for all policyholders. Proponents, however, emphasize the importance of victim rights and accountability for impaired or reckless driving. The shifting landscape of personal injury claims and the balance between protecting insurers and ensuring justice for victims will be significant areas of debate as this bill is considered in the legislative process.
Allows persons operating bicycle, low-speed electric bicycle, or low-speed electric scooter involved in accident to be eligible for personal injury protection benefits; requires crash reports for accidents.
Requires State Treasurer to reimburse county treasurer for defense costs and administrative expenses incurred by county in defending certain lawsuits during supersedure of county prosecutor by Attorney General.