NJ legislature overrules NJ Supreme Court on PIP priority case

Law gives Auto Crash Victims Priority over PIP Carrier’s Subrogation Claims

N.J. Law Journal reports today:

Gov. Chris Christie has signed a bill mandating that when an injured party and a PIP carrier seek recovery from an at-fault party’s insurer, the injured party is to be made whole first.

The measure, S-191, signed on Jan. 28, amends the Personal Injury Protection subrogation statute, N.J.S.A. 39:6A-9.1(b), to provide that recovery from a tortfeasor’s carrier by an insurer, health maintenance organization or governmental agency is:

“subject to any claim against the insured tortfeasor’s insurer by the injured party and shall be paid only after satisfaction of that claim, up to the limits of the insured tortfeasor’s motor vehicle or other liability insurance policy.”

It neutralizes a state Supreme Court decision that had the opposite effect, Fernandez v. Nationwide Mutual Fire Ins. Co., 199 N.J. 591 (2009). The Court held that giving priority to reimbursing the carrier “advances stability in the insurance marketplace by requiring that the ultimate cost of PIP benefits be borne by the insurer of the responsible party, not by the insurer of the victim.”

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About Lawrence "Larry" Berezin

I retired from the private practice of law after a 35-year legal career and fight parking tickets for people like you and me. I love sharing valuable information and beating NYC parking tickets for the driving community

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