Navigating NJ 17B:25-11: Timelines and Procedures for Life Insurance Claim Settlements in New Jersey

Life insurance can provide crucial financial support to beneficiaries upon the policyholder’s death, but understanding the process for claiming these benefits may be vital. New Jersey Statute 17B:25-11 outlines specific provisions regarding the payment of claims, including required timelines for insurers to settle claims or notify claimants of any issues. This article breaks down these key provisions to help beneficiaries in New Jersey understand their rights and what to expect when filing a claim. If you encounter delays or disputes with a life insurance claim, the NJ life insurance lawyers at the Law Offices of Jason Turchin can help you navigate these challenges. Contact us at (800) 337-7755 for assistance tailored to your situation.

Overview of NJ 17B:25-11

New Jersey’s life insurance statute helps ensures that claimants receive timely payouts and are adequately informed throughout the claim process. The statute details several important requirements:

1. Settlement Within 60 Days (Subsection a):
   Insurers may settle claims within 60 days after receiving due proof of death, and, if required, either the surrender of the policy or proof of the claimant’s interest, or both. This prompt settlement is supposed to help ensure that beneficiaries receive their benefits in a timely manner without unnecessary delays.
2. Notification Within 45 Days of Additional Investigation or Denial (Subsection b):
   If a claim requires further investigation or may be denied, the insurer may notify the claimant in writing within 45 days of receiving the necessary documents. This notification may explain that the claim may be under investigation or the reasons for denial, except in cases where there may be a probable cause to suspect fraud.
3. Payment of Uncontested Claims (Subsection b):
   Any uncontested portion of a claim may be paid no later than the 60th day following receipt of the necessary documents, ensuring that claimants receive at least part of their due benefits promptly.
4. Final Decision Within 90 Days (Subsection c):
   Upon receiving any additional documents or information related to a claim under investigation, insurers may either pay the benefits or deny the claim within 90 days. This provision helps to prevent prolonged investigations that can unduly delay the payment process.
5. Interest on Overdue Payments (Subsection d):
   Payments that are not made within these specified timelines may be considered overdue and will accrue interest at a rate equal to the average rate of return of the State of New Jersey Cash Management Fund for the preceding fiscal year, rounded to the nearest half percent. This interest is designed to compensate the claimant for the delay.

Implications for Policyholders and Beneficiaries

Understanding these provisions may be crucial for anyone involved in a life insurance claim in New Jersey:

• Be Prepared: Ensure that all necessary documents are submitted promptly to avoid delays in the claims process.
• Understand Your Rights: Knowing the timelines within which insurers must act can help you monitor the process and assert your rights if delays occur.
• Seek Assistance: If you experience undue delays or if your claim is denied and you believe it was unjustified, seeking legal assistance can help you address these issues effectively.

Conclusion

NJ 17B:25-11 provides a structured framework for the timely processing and payment of life insurance claims, protecting the rights of beneficiaries during a challenging time. Understanding these legal provisions can empower beneficiaries to effectively manage their claims and seek recourse if necessary. If you need help understanding the details of your life insurance claim or if you are experiencing difficulties with your claim, contact the Law Offices of Jason Turchin at (800) 337-7755. Our team is ready to provide you with the guidance and support needed to help ensure that your claim is handled fairly and promptly.