STATEMENT TO

 

[First Reprint]

ASSEMBLY, No. 2052

 

with Assembly Floor Amendments

(Proposed By Assemblyman DIGAETANO)

 

ADOPTED: JUNE 23, 1997

 

      These amendments require a claimant who brings a "bad faith" action concerning settlement of an insurance claim against an insurer to bring a motion at the completion of discovery to demonstrate that there are sufficient facts to support a prima facie case against the insurer. The insurer is permitted to file a response. If the court decides that the facts are insufficient, the case is dismissed. The purpose of these amendments is to discourage the filing of frivolous bad faith claims against insurers. In bringing the motion, the parties and the court are to follow the provisions of the Rules Governing the Courts of the State of New Jersey applicable to summary judgment motions.

      The floor amendments also provide that an insurance agent, insurance broker or insurance consultant who is not responsible for determining the validity of claims made under a policy would not be open to suit under the bill.