New Jersey Senate Bill S467

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22
• Report Pass: 6/20/22

Caption

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.