New Jersey Supreme Court: Craig Chiaccheri v Zurich American Insurance Company

• Craig Chiaccheri sued Zurich American Insurance Company (ZAIC) over denied underinsured motorist coverage, arguing policy limitations violated New Jersey law.
• The case is currently pending before the New Jersey Supreme Court, which is reviewing certified questions from the Third Circuit Court of Appeals.
• The decision will clarify the interpretation of New Jersey statute N.J.S.A. 17:28-1.1(f) regarding underinsured motorist coverage for employees of corporate entities.

The New Jersey Supreme Court's decision will clarify the scope of underinsured motorist coverage for employees under corporate insurance policies.

Craig Chiaccheri brought a lawsuit against Zurich American Insurance Company (ZAIC) after a dispute regarding underinsured motorist coverage. ZAIC's policy had limitations on underinsured motorist coverage for employees of corporate entities. Chiaccheri disputed these limitations, arguing they violated New Jersey law and public policy. The case is currently before the New Jersey Supreme Court, which received certified questions from the Third Circuit Court of Appeals.

The New Jersey Supreme Court's decision in Chiaccheri v. Zurich American Insurance Company will clarify the interpretation of N.J.S.A. 17:28-1.1(f) concerning the maximum underinsured motorist coverage available under a policy that names a corporate or business entity as an insured for its employees. The ruling will address whether endorsements limiting underinsured motorist coverage to an amount less than the general third-party liability coverage limit under the same policy violate this statute or are contrary to public policy.

The New Jersey Supreme Court's pending decision in Craig Chiaccheri v. Zurich American Insurance Company is significant for insurance companies operating in New Jersey, particularly concerning corporate motor vehicle liability policies and underinsured motorist coverage for employees. The ruling will provide clarity on the scope of coverage requirements under state law, impacting how insurers structure policies and process claims related to underinsured motorist benefits.

Lawyers and compliance officers should watch for the implications of this unanimous court decision, which may set a precedent for future cases involving insurance company liability in the US.

Source: Original reporting via Supreme Court Syllabus