N.J. Admin. Code § 11:3-28.6

Current through Register Vol. 56, No. 21, November 4, 2024

Section 11:3-28.6 - Insurer's continuing obligation to investigate claims

(a) An automobile liability insurer shall be required to discharge its duty of investigating claims where the potential exposure to the insurer exceeds $75,000. Said insurer's duty and obligation with regard to claim handling shall exist and continue to exist notwithstanding this rule. The Executive Director may direct such investigations as often as he or she deems necessary. All expenses relating to the investigation of claims, including expenses for medical examinations, file maintenance and cost containment measures, are the responsibility of the automobile liability insurer.

(b) The failure to properly discharge the duty of investigating a claim may result in the imposition of a penalty, to be determined by the Board's designee against the insurer's request for reimbursement.

Amended by R.1991 d.45, effective 2/4/1991.
See: 22 N.J.R. 1678(a), 23 N.J.R. 306(b).
Added new subsection (b) to text, therein creating subsection (a) to existing text.
Recodified from 11:3-28.5 and amended by R.1993 d.583, effective 11/15/1993.
See: 25 N.J.R. 2636(b), 25 N.J.R. 5219(a).
Amended by R.2006 d.243, effective 7/3/2006.
See: 37 N.J.R. 4162(a), 38 N.J.R. 2828(c).
Substituted "Board's designee" for "UCJF Board of Directors" in (b).