Automobile

Intrafamily Exclusion In Auto Policy Ruled Unenforceable (NJ)

On May 6, 2022, a New Jersey appellate panel upheld a policyholder’s win in a coverage dispute with Travelers Insurance Company, holding an intrafamily step-down exclusion acted as a “hidden trap” in a family’s auto policy where not reflected in the policy declarations page. Specifically, in Cristina Dela Vega v. The Travelers Insurance Company, et al., (No.:...Read More

“Other Insurance” Provision Allows Insurer To Cap Limits (PA)

In Meyers v. Travelers Insurance Company, 2022 WL 1028705 (E.D. Pa. 2022), the plaintiff sued one of her auto liability insurers for extensive damages sustained in an automobile accident. This common occurrence led to a rather uncommon insurance coverage issue. The plaintiff recovered funds from her own primary auto insurance, plus two additional uninsured motorist (“UIM”) insurance policies....Read More

New Jersey Passes Insurance Fair Conduct Act (NJ)

On January 18, 2022, Governor Phil Murphy signed into law the New Jersey Insurance Fair Conduct Act.  The Act establishes a private cause of action for first-party claimants against a UIM insurer for “unreasonably” denying or delaying claims.  It also allows a claimant to sue the insurer if the insurer violates any provision of New Jersey’s Unfair Claims Settlement Practices Act which governs...Read More

The End Is Near. Statutory Bad Faith Begins in NJ

Well, it finally happened.  After a few years of debates and a not insignificant amount of plaintiff lobbying, this week, Governor Murphy signed into law the New Jersey Insurance Fair Conduct Act. The law creates statutory bad faith in NJ.  Fortunately (although this is likely the canary in the coal mine), the law ONLY applies to parties injured in a motor vehicle accident who are entitled to...Read More

Automobile Regular Use Exclusion Hits the Red Light of the Motor Vehicle Financial Responsibility Law (PA)

On October 22, 2021, in Rush v. Erie Insurance Exchange, 2021 Pa.Super 215 (2021), the Pennsylvania Superior Court held that an Erie Insurance Exchange (“Erie”) regular use exclusion was unenforceable because it modified the clear and unambiguous requirements of Pennsylvania’s Motor Vehicle Financial Responsibility Law, 75 Pa.C.S. §§ 1701-99.7 (“MVFRL”), by functionally precluding insureds...Read More