NJ Introduces Right-to-Appraisal Bill to Improve Insurance Claim Dispute Resolution

New Jersey legislators have introduced Assembly Bill 6106, a right-to-appraisal bill that mandates insurance policies include a provision for appraisal by a neutral appraiser in cases of disputes over actual cash value or loss amounts. This bill mirrors Senate Bill 4534 filed earlier and aims to provide a formal process for resolving disagreements between policyholders and insurers regarding claim values or settlement offers. The appraisal process involves each party selecting an appraiser, and if necessary, submitting the case to an umpire or court-appointed judge to resolve conflicts over loss amounts or settlements. This legislative move aligns New Jersey with other states like Washington, Texas, Rhode Island, and Illinois, which have enacted or proposed right-to-appraisal laws to streamline claim dispute resolutions. Stakeholders such as automotive service providers and collision repair associations have been actively involved in advocating for these laws, emphasizing their role in clarifying claim settlements and protecting policyholder rights in the insurance market.