Insurer not entitled to immunity from suit, rules new jersey supreme court

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An insurance company is not entitled to unsusceptibility from suit over an insured's election of insurance coverage where the insurance company gave out erroneous information, the New t-shirt Supreme Court has ruled. The insured person phoned his auto insurance company to ask how to obtain coverage for his wife, who had just purchased a new car. He specifically requested that her insurance coverage be as good as his insurance coverage. The client representative told him that adding his wife and her car to his electric current policy would provide each of them with a $500,000 policy limit. In fact, this split that limit betwixt them.

The couple was badly injured in a single accident in the same vehicle. They sought a declaratory judgment that each was entitled to benefits up to $500,000.

The insurance company argued it was immune under a state legislative act protecting insurers from suit "on business relationship of the election" of insurance coverage by the insured person.

But the court held that the insurance company was not entitled to unsusceptibility under these circumstances.

"Here, having specifically asked for a offprint policy for [his wife] that would give [her] the same insurance coverage that [the insured person] had, and having been assured that by adding [her] to the existing policy, each of the partner would have the same insurance coverage that [he] had preceding [her] add-on to the policy, the declarations page that complainant received instantly thereafter did not dispel the inaccurate advice that [the insured person] had been given. ...

"Under these circumstances, and in light of the great importance of the declarations page in determining the reasonable expectations of an insured person ... We conclude both that the policy documents were ambiguous and that it was reasonable for complainant to believe that they had secured the 'double coverage' that they idea they had been promised," the court held.

New t-shirt Supreme Court. Pizzullo v. New t-shirt Manufacturers Insurance Co., No. A-21-07. August 7, 2008. Lawyers USA No. 99310555.

Originally published by Lawyers USA Staff Report.