New Jersey Raises Auto Liability Limits and State Insurance Changes
New Jersey Increases Auto Liability Limits
Starting January 1, 2026, New Jersey will enforce new minimum limits for standard auto liability policies, raising them to $35,000 per person and $70,000 per accident for both liability and uninsured/underinsured motorist (UM/UIM) coverage. This adjustment signifies a strategic move to enhance protection for policyholders, marking an increase from the previous limits of $25,000/$50,000. While the minimum property damage limit stays at $25,000, these regulatory compliance requirements will influence all new and renewed policies, excluding basic and special auto policies, which typically do not cover bodily injury liability and UM/UIM.
New York Changes Could Influence Coverage Denial Practices
On December 24, 2026, changes in USPS procedures, where postmarks indicate the processing date rather than the acceptance date, may affect how insurers document coverage denials. Under NY Ins. Law §3420(d)(2), the postmark date plays a critical role in determining the timeliness of mailed disclaimers. To comply with industry standards, insurers are advised to maintain rigorous documentation practices, preventing disputes related to mailing dates.
Moreover, New York Civil Procedure updates may require insurers to disclose litigation funding details. These disclosures can be crucial in defense strategies, revealing potential financial motives for fraud, which could influence a party’s credibility during litigation, aligning with both regulatory and underwriting practices.
Alabama Court Rules on Employer Liability Exclusion
In Alabama, an appellate court reversed a trial court's decision regarding employer liability coverage for a convenience store clerk, Babwari, who was shot and injured leaving work. Initially deemed an occurrence under the commercial general liability (CGL) policy, the appellate court ruled that the employer liability exclusion applied. This decision underscores the importance of understanding risk management and workers’ compensation principles, highlighting the work-related nature of Babwari’s injuries.
Alberta Transitions to a Care-Based Auto Insurance Model
Effective January 1, 2027, Alberta will transition to a care-based auto insurance model, departing from its existing no-fault system. The new framework will primarily restrict tort actions, maintaining mandatory no-fault benefits for bodily injury or death, including health care, rehabilitation, and income replacement. This model, focusing on comprehensive care benefits, signifies an industry shift aimed at enhancing policyholder protection and by streamlining claim processes through a newly established tribunal. Additionally, insurers will have the option to offer policies that exceed statutory coverage limits, emphasizing the role of carriers in expanding consumer choices.