NJ panel gives Geico partial win in auto cover line

By Josh Liberatore (June 10, 2022, 8:10 p.m. EDT) — A New Jersey appeals panel on Friday upheld a decision to vacate a default judgment against Geico in an uninsured motorist coverage dispute, though the court will allow an insured to amend its complaint to allege bad faith despite Geico’s insistence that a settlement has been reached.

In an unpublished notice, a two-judge panel said that while Geico should have been more careful in ensuring that Steven Ferrara’s 2020 complaint and notice of a subsequent evidentiary hearing were sent to its claims, the insurer acted quickly once it became aware of the relevant paperwork.

Because the insurer moved to release the…

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