Gov. Christie Signs Law Giving Injured Persons Priority Over PIP Carriers

Governor Chris Christie has signed S-191 which amends the Personal Injury Protection statute (N.J.S.A. 39:6A-9.1(b)) to provide that a injured party must be made whole prior to a PIP carrier seeking recovery from an at fault party’s insurer.  As previously reported in our blog, the proposed law passed both houses of the legislature without opposition.  The newly amended law provides that “any recovery by an insurer, health maintenance organization or governmental agency…shall be subject to any claim against the insured tortfeasor’s insurer by the injured party and shall be paid on after satisfaction of that claim, up to the limits of the insured tortfeasor’s motor vehicle or other liability policy.

The amended law nullifies the Supreme Court’s decision in Fernandez v. Nationwide which held that it was proper to give priority to a carrier seeking to be reimbursed for PIP benefits it had paid out even if it reduced the amount of money which could be recovered by an injured party.

— Erik Anderson, Esq.

Reardon Anderson is a Tinton Falls, New Jersey based law firm which represents the interests of businesses, insurance companies and individuals throughout New Jersey and the metropolitan New York City area. Please visit our website at http://reardonanderson.com to learn more about our firm.

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