THE 2022 NEW JERSEY INSURANCE FAIR CONDUCT ACT AND THE INCOMPLETE EVOLUTION OF POLICYHOLDER PROTECTION

Passage of New Jersey's Insurance Fair Conduct Act ("IFCA') was the culmination of efforts by policyholder advocates to revise unfortunate caselaw and provide increased protection for insurance policyholders presenting uninsured ("UM)' or underinsured ("UIM)' (collectively "UM/UIM)' claims. The IFCA significantly expands policyholder rights beyond those provided in the widely adopted Model Unfair Claims Settlement Practices Act promulgated by the National Association of Insurance Commissioners ("NAIC)'-enough that New Jersey insurers have raised questions about its application and concerns about its reach. In addition to describing the Act, and attempting to answer questions about its likely future application, this Article attempts to site the IFCA in the larger regime of insurer-policyholder relations, a regime that has largely fallen short of consumer expectations. Although the IFCA presents a significant step forward, the legal landscape largely remains one unduly favorable to insurers but can be improved by the concluding suggestions of this Article.