New Jersey Bill Proposes Mandatory Auto Insurance Appraisal Provisions

A New Jersey legislative bill, Assembly Bill No. 6106, proposes mandating all auto insurers operating in the state to include appraisal provisions in their policies for resolving claims and settlement disputes. This requirement would apply to policies issued, renewed, or executed in New Jersey, encompassing both repairable and total losses, as well as third-party liability claim settlements. The process involves appointing a competent and disinterested appraiser by each party in disagreement, who appraise the vehicle loss or settlement value within specified timelines. If the appraisers fail to reach consensus, an umpire or a court-appointed judge will resolve the valuation dispute by selecting one appraiser's valuation. This bill emphasizes defined roles, responsibilities, and deadlines for appraisers and umpires, aiming to streamline conflict resolution in auto insurance claims. If enacted, this legislation would become effective 90 days post-enactment and impact claims filed or settlements offered thereafter. Industry professionals can expect appraisal rights to become a standard element of New Jersey auto insurance policies, affecting claim negotiation dynamics and dispute resolution procedures.