Deemer Law: When Does It Apply?

The Deemer Statute, which can be found at N.J.S.A. 17:28-1.4, applies to any out-of-state driver who is involved in a car accident while driving in New Jersey. The law states that any out-of-state car insurance policy is construed as if it provides the insurance required by New Jersey statute, including Personal Injury Protection (PIP) benefits. This means that out-of-state drivers involved in accidents in New Jersey may be entitled to up to $250,000 of PIP or medical benefits. However, they may also be subject to New Jersey's limitation on lawsuit tort election, which could restrict their ability to recover damages for pain and suffering. The Deemer Statute is part of New Jersey's no-fault automobile insurance plan and aims to ensure that out-of-state drivers have the legally required amount of insurance coverage to compensate others for physical injuries in the event of an accident.

Out-of-state drivers involved in accidents in New Jersey

If you're an out-of-state driver involved in a car accident in New Jersey, you'll be subject to the Deemer Statute. This law essentially turns your out-of-state auto insurance policy into a New Jersey policy while your car is being driven in the state. This means that if you have an accident, your insurance will provide you with the benefits and be subject to the limitations of a New Jersey insurance policy.

The Deemer Statute applies to any out-of-state driver who is driving their car in New Jersey and gets into an accident. The key is that the driver must be operating their insured vehicle in New Jersey. Simply riding in an out-of-state car as a passenger is not enough to trigger the Deemer Statute.

The effect of the Deemer Statute is that any out-of-state car insurance policy issued by an insurer authorised to do business in New Jersey is construed as if it provides the insurance required by New Jersey statute. This includes providing Personal Injury Protection (PIP) benefits of up to $250,000, even if this is not covered in the actual insurance policy.

However, the Deemer Statute also contains a "limitation on lawsuit" option, which means that out-of-state drivers may not be able to recover damages for non-economic losses like pain and suffering, unless they satisfy the lawsuit threshold. This threshold requires that the driver suffered a permanent injury, loss of a fetus, or death.

It's important to note that New Jersey's insurance laws are unique as it is a choice no-fault state. This means that drivers can choose between a basic or standard insurance policy, each with different minimum requirements. As a result, it's likely that an out-of-state driver involved in an accident in New Jersey may have more than the state's minimum insurance requirements.

Out-of-state insurance policies deemed to contain a limitation on lawsuit option

The Deemer Statute, found at N.J.S.A. 17:28-1.4, applies to out-of-state insurance policies and is part of New Jersey's no-fault automobile insurance plan. The statute mandates that out-of-state insurance policies are deemed to include the same Personal Injury Protection (PIP) benefits as required under New Jersey law, including a minimum limit of $250,000 in PIP coverage. This means that if an out-of-state driver is involved in an accident in New Jersey, their insurance policy will be "deemed" to have the legally required amount of insurance coverage to compensate others for physical injuries.

However, there is a trade-off to this benefit. In exchange for the right to receive these benefits, out-of-state drivers may be subject to New Jersey's verbal threshold or "limitation on lawsuit" option. This means that an out-of-state driver may not be able to recover damages resulting from the accident unless they satisfy the lawsuit threshold. The lawsuit threshold requires that the claimant must have sustained one of the following injuries:

• Dismemberment (loss of arms, legs, fingers, or toes)
• Significant disfigurement or significant scarring
• Displaced fracture (broken bone)
• Loss of a fetus (unborn child)
• Permanent injury within a reasonable degree of medical probability, excluding scarring or disfigurement

The Deemer Statute applies to any out-of-state driver who drives their car in New Jersey and is involved in an accident. It is important to note that simply riding in an out-of-state car as a passenger is not enough to trigger the Deemer Statute. The key is that the driver must be operating their insured vehicle in New Jersey. Additionally, the out-of-state driver's insurance company must be authorized to conduct business in the state of New Jersey for the Deemer Statute to apply.

The benefit of $250,000 in PIP or medical benefits for out-of-state drivers

The Deemer Statute, found at N.J.S.A. 17:28-1.4, applies to out-of-state drivers who are involved in a car accident in New Jersey. This statute ensures that the out-of-state driver is "'deemed' to have the legally required amount of insurance coverage" to compensate the other driver for their physical injuries.

The benefit of the Deemer Statute for out-of-state drivers is that it provides up to $250,000 in Personal Injury Protection (PIP) or medical benefits. PIP is a type of car insurance that covers expenses such as medical bills, lost wages, or funeral costs, regardless of who is at fault for the accident. This means that if an out-of-state driver is involved in an accident in New Jersey, they can receive up to $250,000 in benefits to cover their medical expenses, lost income, and other related costs.

For example, if a driver from New York or Pennsylvania is involved in an accident in New Jersey, they will be covered by the Deemer Statute and will be entitled to up to $250,000 in medical benefits. This coverage is provided by their own insurance company, as long as the company is authorized to do business in New Jersey.

However, it is important to note that in exchange for the right to receive these benefits, the out-of-state driver may be subject to New Jersey's limitation on lawsuit tort election, which may restrict their ability to recover damages for pain and suffering.

Overall, the Deemer Statute provides valuable protection for out-of-state drivers involved in accidents in New Jersey, ensuring that they have access to the necessary financial resources to cover their medical and other related expenses.

The deemer statute's critics

The Deemer Statute, N.J.S.A. 17:28-1.4, has been the subject of much debate and litigation. The statute is notoriously difficult to parse, and its critics highlight several issues.

Firstly, the Deemer Statute can be seen as unfavourable to out-of-state drivers involved in accidents in New Jersey. While it ensures that these drivers receive Personal Injury Protection (PIP) benefits, it also subjects them to New Jersey's "limitation on lawsuit" option. This means that out-of-state drivers may not be able to recover damages for pain and suffering resulting from the accident unless they satisfy the lawsuit threshold, which can be challenging.

Secondly, critics argue that the Deemer Statute creates uncertainty and ambiguity in insurance coverage. The statute mandates that out-of-state insurance policies be "reformed" to comply with New Jersey's PIP requirements, but it is unclear if these "deemed" policies include standard policy exclusions permitted under New Jersey law. This ambiguity can lead to disputes over insurance coverage and benefits.

Additionally, the Deemer Statute has been criticised for its potential to limit insurers' ability to recover PIP payments from other insurers. It is unclear whether an insurer who provides PIP coverage under the Deemer Statute is insulated from PIP recovery provisions, which may impact their ability to seek reimbursement for claims paid.

Furthermore, critics argue that the Deemer Statute unfairly targets out-of-state drivers and insurers. By requiring out-of-state policies to conform to New Jersey's insurance requirements, the statute imposes additional costs and complexities on these drivers and their insurers. This includes the potential for higher insurance premiums for out-of-state drivers who occasionally drive in New Jersey.

Lastly, some critics question the effectiveness of the Deemer Statute in reducing the demands on the Unsatisfied Claim and Judgment Fund, which was one of its intended purposes. It is unclear if the statute has achieved this goal, and there may be alternative approaches to address the issue of underinsured out-of-state drivers.

When an injury is considered permanent

The Deemer Statute is a law in New Jersey that applies to out-of-state drivers who are involved in motor vehicle accidents within the state. This law ensures that these drivers have the legally required amount of insurance coverage to compensate others for physical injuries caused by the accident.

Now, onto your main question: when is an injury considered permanent?

A permanent injury refers to physical or mental damage that will restrict a person's employment and/or other activities for the rest of their life. It is irreversible harm that may inhibit an individual's ability to work or live as they did before. Medical professionals may refer to the point of maximum recovery as "maximum medical improvement," indicating that further improvement is unlikely.

Some examples of permanent injuries include lost limbs, amputations, blindness, and paralysis. However, other injuries, such as traumatic brain injuries (TBIs) and spinal cord injuries, can also result in permanent damage, even if the symptoms are not immediately apparent. These injuries can lead to chronic pain, permanent loss of range of motion, and various mental health conditions.

It is important to note that the determination of a permanent injury may have legal implications, especially in personal injury lawsuits. Proving the existence of a permanent injury can be crucial in obtaining just compensation from insurance companies and liable parties.

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