Disclosure of policy limits

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Latest post 12-05-2007 11:12 AM by njgal. 5 replies.
  • 11-28-2007 4:42 PM

    • AJP1
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    • Joined on 11-28-2007
    • Posts 1

    Question [=?] Disclosure of policy limits

    In NJ are adjuster required to disclose policy limits to attys
  • 11-28-2007 5:26 PM In reply to

    re: Disclosure of policy limits

    I don't think so.

    What difference does it make?

    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
  • 11-29-2007 3:54 PM In reply to

    • njgal
      Lawyer
    • Top 150 Contributor
    • Joined on 10-09-2001
    • Posts 352

    Feedback [*=*] re: Disclosure of policy limits

    No. However, it can be sought in discovery if a lawsuit is filed from the policyholder.
  • 11-30-2007 8:43 PM In reply to

    Ok [+0+] re: Disclosure of policy limits

    njgal, I hope you mean that the amount of policy limits can be sought in discovery if a lawsuit is filed from the THIRD PARTY CLAIMANT.

    If I were a policyholder and wanted to know how much coverage I purchased, my insurer durn well better tell me!

    I do concur that the amount of liability coverage is a contractual matter between the policyholder and the insurer, and in the absence of either insured's consent for disclosure, or applicable suit discovery rules, the amount would be subject to privity and confidentiality.

    My hillbilly layman's opinion...
  • 12-02-2007 9:21 PM In reply to

    News [|*|] re: Disclosure of policy limits

    Although some states have statutory disclosure madates, in all states the issue of policy limit disclosure is important.

    For the claimant it is vital to know whether the carrier will be able to pay a judgment or whether the insured will be ultimately looked to.

    For the insured its important because he wants to prevent execution of judgment on his personal assets and early settlement is the best way to avoid such a disaster.

    For the insurer it's important bscause unreasonable refusal to disclose policy limits--such as where the claims adjustor knows early in the investigation that the value of claimant's injuries is much greater than the policy limits--could ultimately be bad faith handling of the claim leaving the insurance company in a conflict of interest with its insured. Then, ultimately the insured could assign his right (against his IC) to the injured party and the IC could end up paying more than the policy limit that it refused to disclose.
  • 12-05-2007 11:12 AM In reply to

    • njgal
      Lawyer
    • Top 150 Contributor
    • Joined on 10-09-2001
    • Posts 352

    Feedback [*=*] re: Disclosure of policy limits

    that may be true in CA, but the question posed involved NJ. In NJ, there is no obligation of the insurer to disclose the limits to a third party claimant. A claimant may seek that information in a lawsuit against the policyholder from the policyholder.

    No action in bad faith exists for failing to disclose the policy limit amount to a claimant under NJ law.

    A separate set of rules applies to the relationship between an insurer and a policyholder (who presumably knows his limit) and demands for settlement made at or within limits, and the potential issues that might arise if an insurer refuses to so settle.
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