N.J. Admin. Code § 11:3-10.5

Current through Register Vol. 56, No. 8, April 15, 2024

Section 11:3-10.5 - Unreasonable delay

(a) Unless a clear justification exists, physical damage claims will have a maximum payment period of 30 calendar days. A payment period is the period between the date of the receipt of the notice of loss by the insurer, and:

1. The date the settlement check is mailed; or

2. The date on which the damaged vehicle is returned to use when the insurer elects to repair or have repaired the insured vehicle; or

3. The date on which the damaged vehicle is replaced by the insurer.

(b) If any element of a physical damage claim remains unresolved more than 30 calendar days from the date of receipt of notice of loss by the insurer, the insurer shall provide the insured with a written explanation of the specific reasons for delay in the claim settlement. An updated letter of explanation shall be sent again every 30 calendar days thereafter until all elements of claim are either honored or rejected.

(c) Any letter of explanation, rejection or acceptance of any element of a claim shall contain in the upper right hand corner the date of receipt of notice of loss by the insurer and be identified as such. The letter shall also contain the identity and claim processing address of the insurer, and the insured's policy number and claim number.

N.J. Admin. Code § 11:3-10.5

Amended by R.1985 d.629, effective 12/16/1985.
See: 16 New Jersey Register 3170(a), 17 New Jersey Register 2988(a).
Substituted "Marketplace Regulation and Consumer Assistance Division" for "Consumer Services Division".
Amended by R.1991 d.45, effective 2/4/1991.
See: 22 New Jersey Register 1678(a), 23 New Jersey Register 306(b).
In (d): revised address.
Amended by R.2001 d.44, effective 2/5/2001.
See: 32 New Jersey Register 3891(a), 33 New Jersey Register 573(a).
Deleted (d).