Further evidence of NJ car insurance company deception….
Oct 31st, 2007 | By Michael L. Saile, Jr., Esq. | Category: Blogs, New Jersey Injury Information, Saile & Saile LLP NewsThis week one of New Jersey’s leading auto insurance companies, New Jersey Manufacturers Insurance Company (NJM), announced a record-breaking Special Dividend of approximately $132 million. According to NJM, this marks the 14th consecutive year that the Company is sending policyholders dividend checks, and it nearly doubles the Special Dividend issued at this time last year.
This “special dividend” is clear and substantial proof that NJ auto insurance companies have misled the public, including NJ residents and consumers.
If you have been following this law blog, you will know that I was part of a team of lawyers who fought an NJ limited tort/verbal threshold car accident case all the way to the NJ Supreme Court. This case was titled Serrano v. Serrano.
Back in 2004 and 2005, we asked the NJ Appellate Division and the NJ Supreme Court to rule on whether the limited tort/verbal threshold law contained the requirement that a plaintiff must prove that an injury that had a ‘significant impact on his or her life’ in order to recover damages for their pain and suffering.
NJ auto insurance companies claimed that the NJ limited tort/verbal threshold statute contained an “invisible” requirement that a plaintiff must prove that an injury that had a “significant impact on his or her life.”
NJ car insurance companies, including NJM also claimed that if the NJ Supreme Court ruled that this “invisible” part of the law did not exist, i.e. plaintiffs did not have to prove that the injuries from their NJ car accident had a ‘significant effect on their lives,’ then NJ car insurance rates would go through the roof. There were some claims that NJ car insurance companies would go out of business.
WHAT A CROCK!
The NJ Supreme Court ruled in our favor stating that NJ insurance companies cannot read requirements into the NJ limited tort/verbal threshold law that are not part of the written law. There is no requirement that a plaintiff prove that his or her injuries had a ‘significant impact on his or her life’ to satisfy the NJ limited tort/verbal threshold law.
In the past few years NJ car insurance company profits continued to increase as shown above. These types of lies and deception taint our jury pool. How do you think these NJ insurance companies should be punished for their lies and deception?
The author of this Blog, Philadelphia car accident lawyer, Michael L. Saile, Jr., Esq. of Saile & Saile LLP, Attorneys-at-Law focuses his practice on fighting for plaintiffs’ personal injury and car accident victim’s rights in both Pennsylvania and New Jersey. We handle all serious injury cases including, car accidents (both limited and full tort), wrongful death, slip & fall downs, construction accidents, Septa, NJ Transit, dangerous products, and other cases other cases. We are located just outside of Philadelphia in lower Bucks County. We also handle Philadelphia plaintiffs’ personal injury and car accident cases. Please visit our personal injury only website at www.pa-nj-injurylawyer.com for more injury information.
The fact that NJM is returning the money to it’s policyholders (myself being one of them) would indicate that are being forthright and honest. They are essentially refunding millions of dollars that were not used to pay claims. Can it really be considered a “profit” if the company does not retain the money for it’s own use? When was the last time you heard about an attorney returning money that was overcharged…I would think NEVER!
I DO NOT KNOW A LOT ABOUT INSURANCE COMPANIES, BUT, THEY, LIKE ANY COMPANY, NEEDS TO HAVE PROFIT! They are not a non profit business.
Maybe insurance should be non profit?
iF INSURANCE COMPANIES CAN NOT PAY CLAIMS, THEY SHOULDNT BE IN BUSINESS TO SELL INSURANCE, IF THEY CAN AND DO PAY CLAIMS, I DO NOT SEE WHAT THE ARGUMENT IS AGAINST THEM.
Like i said, i am not educated in this, just seems to me that claims are paid. Ia have never had a property damage claim not paid by allstate. they always pay.
Miguel:
I have a business and accounting background. Corporations are required to pass out profits to their owners (shareholders) or reinvest the profits.
Profits = Revenue minus expenses. A partnership, LLC, or corporation must distribute its profits to its owners or reinvest. This is not being \”forthright or honest\”. It is required.
The point of my blog entry was to show that these NJ car insurance companies cried that the Serrano decision by the NJ Supreme Court would bankrupt NJ car insurance companies.
At the very least the Serrano decision had no negative effect on NJ car insurance companies. A prime example is NJM, which is making profits hand over fist.
is a policy holder a share holder?
what an awsome deal if true
Mr Saile, if i get your argument right, profits show of been pauid the the sharholders and not necesaarly to the policy holders.
My mom’s Unlce made alot of m,ney in the CONNECTICUT insurance business back long time time, 50 yerars ago, and always recieved dividends on the sales. It is the business, god willing, god bless em.
Jim seems to me that you have never been injured in a car accident.
You missed the boat on my blog entry. All for-profit comporporations should be making a profit or they will go out of business.
Please re-read my blog entry especially the section that speaks about Serrano v. Serrano.
Mr, SAILE, IN MY LACK OF KNOWLEDGE,. … do you belive the insurance compaanies can pay settlemtns, just awards, and dividends?
If they cant, the particular compnay should not be in businesss.
Just to show how out of touch insunrance people are…
Back in the 70′s, my mom’s unlcle who i mentioned above, rented his conneitcut home to a person claiming, albiet kinda true, a writer…… god rest his soul, john phillips, from the “mammas and pappas” music group.
My mom’s uncle was so out of touch he had no idea who john philips was.
John phillips and his people, including mic jagger, burned the furniture in the fireplace and left fecces and needles from heroine in evey room.. destroyoed the house in 4 months.
That being said, insurance people are usually out of touch with reality.
One thing aboput insurance you got to understand, it is very old school and very old money!
They are on par with the oil companies.
i assume very difficult to give away profits.
Exxon made what, 60 billion in profit ewch of the last 20 years, average?
heres my socialist agenda…. why should exxon be paying for these auto cliams, afterall, its there oil that is at the root!
Jim I have no idea what you are talking about relating oil companies to the lies the the NJ car insurance companies told to consumers.
I AM TALIKING ABOUT INSANE PROFIT!
did my uncle deserve to recieve profits on sales he made 60 years earlier until well into his 90′s.
you tell me.
yes or no.
try to even rent a one bedroom apartment in stanford for less then 7k a month
lol, why do i feel like timothy leary just joined the blogosphere?
anyhow, back to topic. i agree, i think this goes to show how nefarious the ins companies were in fighting serrano v serrano. they used the same lies many corporations use, claiming it would be bad for consumers because the higher costs would have to be passed down to them. now we see that even after they lost the case they are clearing enough to pay dividends back.
i’m actually very surprised that the courts ruled against them, normally the ins companies just sic their lobbyists on a few corrupt politicians and get their way. i’m glad the good-guys finally won a battle.
Mr. Saile, i re read the atricle and it makes sense.
it makes sense that the bigger companies wouldhave a lot more profit now, as you won the case , smaller companies were forced out of business, … but people still need insurance, so the bigger compoanies that stayted in business have mor ebusinees and therefore more profits.
Not to mention competition being taken away!