New Jersey Assembly Bill A3247

New Jersey 2022-2023 Regular Session

• Introduced: 3/7/22
• Refer: 3/7/22

Caption

Prohibits homeowners' insurers from raising rates of insured on basis of insured's appeal of claim determination.

Impact

The passage of A3247 is set to have a substantial impact on New Jersey's insurance laws by reinforcing the rights of homeowners to appeal claims without facing increased rates. This aligns with broader goals of consumer protection and fair treatment within the insurance industry. By disallowing the raising of rates as a punitive measure, the bill not only enhances the rights of consumers but could also promote a more transparent and accountable insurance sector, improving overall consumer trust. The bill will apply to all homeowners insurance policies delivered, issued, executed, or renewed following its enactment.

Summary

Assembly Bill A3247 introduces a significant regulatory change in the homeowners' insurance market by prohibiting insurers from raising premiums based solely on a policyholder's appeal of a claim determination. This measure is designed to protect consumers from potential punitive actions by insurance companies when they challenge decisions regarding their claims. The bill aims to foster a fairer claims process and encourages homeowners to seek recourse without the fear of financial repercussions that may result from voicing concerns about their insurers' decisions.

Contention

While the bill is generally framed as a consumer protection law, it may draw criticism from insurers concerned about the implications for their rate-setting practices. Insurers may argue that the inability to adjust rates based on claim disputes could lead to unintended consequences, such as higher premiums across the board to compensate for perceived increased risk. Thus, while proponents laud it as a necessary reform to protect homeowners, opponents may highlight potential drawbacks, particularly surrounding the financial viability of insurance providers in the state.