Citizens United Reciprocal Exchange v. Sabrina A. Perez, et al. (A-67-13; 073384)
Where a policyholder elects to add the basic policy’s optional $10,000 coverage for third-party bodily injury in the original contract, the insurer shall be liable to innocent third parties for the contracted $10,000 amount as the minimal amount available under
New Jersey’s compulsory system of automobile insurance coverage, even when that basic policy is later voided due to a fraudulent application. In contrast, when an insured elects not to add the basic policy’s optional $10,000 coverage in their original contract, the insurer shall not be held liable to any injured, innocent third-party claimants under that contract.
