New Jersey Supreme Court Clarifies Scope of Consumer Fraud Act Liability for Insurance Brokers
On July 15, the New Jersey Supreme Court issued a unanimous decision clarifying the scope of liability that insurance brokers may face under New Jersey’s Consumer Fraud Act (CFA). The court held that brokers, producers, and agents are not categorically exempt from the CFA and may be held liable for deceptive or unconscionable conduct — including failing to procure adequate coverage or misleading clients about the scope of their policies.
On July 15, the New Jersey Supreme Court issued a unanimous decision clarifying the scope of liability that insurance brokers may face under New Jersey’s Consumer Fraud Act (CFA). The court held that brokers, producers, and agents are not categorically exempt from the CFA and may be held liable for deceptive or unconscionable conduct — including failing to procure adequate coverage or misleading clients about the scope of their policies.
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