New Jersey
Minimum Auto Limits Raised to $35k/$70k
Effective January 1, 2026, minimum limits for standard auto liability policies increase to $35,000 per person/$70,000 per accident for both liability and UM/UIM coverage (up from $25,000/$50,000). The property damage minimum remains $25,000. These changes apply to all new and renewal policies. Basic and special auto policies are unaffected, as they generally do not include bodily injury liability or UM/UIM coverage. Statute.
New York
Postmark Shift Could Impact NY Coverage Denials
Effective December 24, 2026, USPS clarified that most postmarks now reflect the processing date rather than the date the mail was accepted. Under NY Ins. Law §3420(d)(2), courts often rely on the postmark to assess whether a disclaimer was mailed “as soon as reasonably possible.” Insurers should not rely solely on automated postmarks. To avoid timing disputes:
- Request a manual postmark at the retail counter when mailing disclaimers, or
- Use Certificates of Mailing or Certified Mail receipts for definitive proof.
Failure to document the mailing date could expose insurers to timing challenges. USPS Rule.
Third-Party Litigation Funding Discoverable
New York Civil Procedure requires disclosure of “all matter material and necessary.” Since litigation funding information could reveal a financial motive for fraud, it is relevant to the defense. As a result, funding agreements are discoverable in New York when they bear on a party’s motive or credibility. Decision.
ALABAMA
No CGL Coverage for Employee Shot in Parking Lot Post-Shift
Babwari, a convenience store clerk, was shot nine times while leaving work. He had closed the store late at night and walked to his car parked in the employer’s lot when an assailant robbed and shot him. Babwari obtained a consent judgment from his employer and filed a direct action against his employer’s CGL insurer. The trial court granted summary judgment to Babwari, finding that the attack qualified as an occurrence. The appellate court reversed, ruling that the employer liability exclusion applied because the injuries arose out of and in the course of employment. Applying workers’ compensation principles, the appellate court found a causal link between Babwari’s job duties and the attack, and therefore, the attack occurred within the course of employment. Decision.
ALBERTA, CANADA
Alberta Shifting from No-Fault to Care-Based Auto Insurance Framework
Effective January 1, 2027, Alberta will replace its current no-fault automobile insurance system with a care-based model. Its key features are:
Tort Bar Modified: Tort actions are generally barred with limited exceptions for:
- pain and suffering where the at-fault driver committed certain serious offenses, and
- pecuniary losses exceeding statutory benefit caps (e.g., high-income earners, excess medical or care costs).
No-Fault Benefits Continue: Insurers must pay prescribed benefits for bodily injury or death regardless of fault, including health care, rehabilitation, income replacement, permanent impairment, and death benefits.
Comprehensive Care Benefits: Coverage includes health care, rehabilitation, transportation, daily living assistance, caregiver expenses, and income replacement for full-time, part-time, and temporary earners.
Tribunal for Disputes: Creates a new tribunal to resolve disputes with a streamlined process and eliminates cost awards.
Optional Excess Coverage: Insurers may offer policies providing compensation above statutory limits.
Bill Text.
Read more:
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- Do Insurance Companies Cover Parking Lot Accidents in the USA?
