Requires that definition of occurrence in certain property damage liability insurance policies include coverage for faulty workmanship.
Impact
The implementation of A2917 is expected to have significant implications for contractors and construction professionals across New Jersey. By mandating that faulty workmanship be recognized under the definition of occurrence, the bill is likely to facilitate a more straightforward claims process for parties affected by construction-related damages. Currently, covered damages can sometimes be subject to legal interpretation, which may delay or complicate the claims experience for policyholders. This legislation will help mitigate such uncertainties, leading to improved industry practices.
Summary
Assembly Bill A2917 requires that all commercial liability insurance policies issued, executed, or renewed in New Jersey must include a definition of 'occurrence' that explicitly covers damages arising from faulty workmanship. This change aims to provide more clarity and certainty within the insurance industry regarding coverage provisions that have been inconsistent in court rulings over the years. By addressing both accidents and faulty workmanship within the definition, the bill seeks to eliminate ambiguity regarding whether certain damages constitute a covered occurrence under the policy.
Contention
While the bill may resolve many issues related to insurance coverage and claims processing, it is not without its critics. Some insurers may express concerns regarding the potential increase in claims as a result of the broader coverage definition, and there could be hesitation around the possible implications for insurance premiums. Moreover, the bill explicitly states that it does not limit the nature or types of exclusions insurers may include in their policies, which may raise questions about the balance of coverage and risk-sharing between insurers and insured parties.
Requires MVC to verify certain information concerning commercial learner's permit and commercial driver license applicants and holders to ensure persons illegally in the State do not obtain or hold such permits and licenses.