CFA Doesn’t Apply to Med-Mal Insurance, NJ Judge Rules

May 5, 2015 – In The News
New Jersey Law Journal

Jeffrey Pollock was quoted in the New Jersey Law Journal article, “CFA Doesn’t Apply to Med-Mal Insurance, NJ Judge Rules.” Full text can be found in the May 5, 2015, issue, but a synopsis is below.

In 2013, the first impression decision in Khan v. Conventus Inter-Insurance Exchange ruled that medical-malpractice insurance is not subject to the state’s consumer fraud statute (New Jersey Consumer Fraud Act).

As a result of the ruling, the related CFA claims and all other claims were dropped against Conventus and NIP Management.

Jeffrey Pollock said that Khan’s common-law claims in the suit were also dismissed by Judge Barry Weisenber in a defense motion for summary judgment.

Despite not appealing the CFA decision, Pollock said, “I thought then and I think now that that decision was not right.”

He added that The New Jersey Supreme Court “has never wavered from its position that insurance policies are squarely covered by the Consumer Fraud Act.”