NJ Supreme Court: CFA Exemption Does Not Shield Insurance Professionals
Insurance carriers, brokers, and adjusters operating in New Jersey face expanded consumer-fraud exposure after the state Supreme Court narrowed the Consumer Fraud Act's insurance-professional exemption.
The New Jersey Supreme Court ruled that the Consumer Fraud Act's exemption for the business of insurance does not categorically shield insurance professionals from CFA liability. The decision limits the exemption's reach, meaning insurers, producers, and claims handlers can now be sued under the CFA for conduct tied to insurance transactions that previously fell outside the statute. In-house counsel should reassess sales, underwriting, and claims practices for CFA compliance, update consumer-facing disclosures, and review pending litigation strategy in light of the broader liability surface. The ruling also signals heightened enforcement and private litigation risk across the New Jersey market.