Category archive: New Jersey

Insured’s Repeated Refusal to Attend a Reasonably Requested IME Defeated His Bad Faith Claim

Summary: The insured filed suit against his insurer for breach of contract and bad faith after repeatedly failing to attend an independent medical examination (“IME”) scheduled by his insurer. On appeal, the Third Circuit held the insured materially breached the insurance contract by failing to appear for the IME. The court further held the insurer…

New Jersey Rejects Strict Liability Standard for Bad Faith

Summary:  New Jersey Manufacturers Insurance Company (“NJM”) appealed the ruling that it breached its duty of good faith by failing to settle a claim against its insured which was within its policy limits. The New Jersey Superior Court, Appellate Division, applied the reasonableness standard in assessing whether the claim for bad faith was proper. Wood…


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