New Jersey’s Highest Court Just Ruled That Your Insurance Broker Can Be Sued for Consumer Fraud — Here’s What Changed and Why It Matters to Every New Jersey Policyholder

For nearly two decades, New Jersey insurance brokers operated under a legal shield most of their clients had no idea existed. A 2006 court decision held that insurance producers were “semi-professionals” — a category that exempted them from the New Jersey Consumer Fraud Act. The lower courts dismissed the consumer fraud claim. The Consumer Fraud Act, the court said, is supposed to be construed broadly to protect consumers — and exemptions from it should be construed narrowly. Until the legislature acts, the question of how far this ruling extends beyond insurance brokers remains open.