Mike’s Quick Answer
It depends on the policy and proposed settlement, but often a Longworth notice is the process used to tell a New Jersey UIM carrier that the at-fault insurer has offered its limits. It gives the UIM carrier an opportunity to consent to the settlement or protect its rights before the claimant signs a release.
Why the UIM Carrier Gets Notice
A UIM carrier may have subrogation rights against the responsible driver. If the claimant releases that driver without following the required procedure, the carrier may argue that its rights were impaired.
Longworth v. Van Houten established a practical framework for notice after a policy-limits offer. Policy language and later law still matter.
What the Notice Usually Includes
The package commonly identifies the offer, liability limits, proposed release, crash facts, injuries, damages, and supporting records. The UIM carrier receives time to investigate and decide how to respond.
A proper response can involve consent, questions, coverage positions, or payment to preserve subrogation. The exact procedure should be handled by counsel familiar with New Jersey UIM claims.
Do Not Treat It as a Form Letter
The timing, recipient, proof of delivery, supporting materials, policy notices, release language, and all potentially liable parties matter. A template sent after settlement may be too late.
Mike can review the offer and policies before any release is signed. This article is general information, not instructions for handling a live deadline.
Frequently Asked Questions
Does the UIM carrier have to approve every settlement?
It depends on the policy and circumstances. Often the issue is giving the carrier the required opportunity to protect its rights before the at-fault party is released.
Can I send the notice myself?
It depends on the claim, but the consequences of an incomplete or late notice can be significant. Counsel should review the policies, offer, recipients, and proposed release before action.
Sources and Further Reading
Important
This article provides general New Jersey information and is not legal advice. Every matter depends on its facts, policy language, deadlines, and applicable law. Medical questions should be discussed with a licensed physician. Tax questions should be discussed with a qualified tax professional.