Insurance costs will soar under pending bills
The Garden State is the birthplace of iconic American companies such as the
But state legislators seem intent on jeopardizing that legacy and driving out even more job creators by allowing the state’s trial bar to push through harmful legislation that creates a financial windfall for lawyers at the expense of regular citizens. There are two bills before the state Legislature that will drive up insurance costs and encourage frivolous litigation.
The first,
The only thing this bill will do is increase costs for New Jerseyans. A study by
S2144/A3850/A4293 will have the same effect on
The second bill, Senate Bill 1766, would expand the range of damages under the state’s Wrongful Death Act, allowing unlimited recovery for emotional damages.New Jersey has made great progress since the time when its insurance rates were far higher than those in neighboring states.Under the current law, the family of someone who passes away because of the wrongful conduct of another person is entitled to the financial value of the person’s earnings, services and companionship. S1766 would profoundly expand upon the definition by allowing for damages to be awarded based on things that are harder to put a dollar amount on, like mental anguish and pain and suffering.
Of course no amount of money could ever replace the loss of a loved one, but giving trial lawyers free rein to sue will have an impact not just on consumers and businesses, but on state and local budgets. In fact, former Gov.
The state’s wrongful death statute already has a fair process in place, where damages are based upon tangible criteria like lifetime earnings capacity and the cost of child care. By expanding the definition to include “pain and suffering,” lawsuits can turn into an unpredictable and speculative mess, hindering settlement decisions and forcing premium increases on all consumers.
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