On January 28, 2011, New Jersey Governor Chris Christie signed into law a significant amendment to N.J.S.A. 39:6A-9.1, the statute which controls recovery of PIP from tortfeasors. The situations in which recovery is permitted (tortfeasors not required to carry PIP or failing to carry PIP) remain the same. What the amendment adds is that an insurer may not recover PIP until its insured's bodily injury claim has been resolved, and then only when the tortfeasor has remaining liability insurance limits with which to satisfy the PIP reimbursement claim. Previous court precedent had indicated that the PIP carrier could pursue its PIP recovery at the same time as its insured pursued a BI claim, and either one might get to the tortfeasor's insurance proceeds. The statute clarifies that the insured has a right to be made whole for his or her injuries and that this right is given precedence over the insurer's right to recover PIP.

The full text of the bill signed by Governor Christie, S-191 can be accessed by clicking here. Please visit our Guide to Recovery of PIP in New Jersey for the text of the key New Jersey statutes regarding PIP recovery, together with an outline of those statutes, hyperlinks to definitions of key terms, discussions of key provisions of each statute, relevant case law, and other selected issues of New Jersey subrogation.

Please note that the information included herein is solely the product of Law Offices of Jan Meyer and Associates, P.C and does not not constitute legal advice. For legal advice kindly contact our office.