This bill mandates that all automobile insurers in New Jersey include an appraisal provision in their insurance policies. The provision allows for an appraisal by a competent and disinterested appraiser when there is a disagreement between the policyholder and the insurer regarding the actual cash value or amount of a loss reported on a claim, or concerning the offer of settlement for a third-party liability claim. If a disagreement arises, either party can invoke the appraisal provision by submitting a written demand letter, prompting the other party to select an appraiser within 20 calendar days. The appraisers will then have 20 business days to assess the loss and report their findings.

Additionally, if the appraisers cannot reach an agreement on the valuation, they must submit their differences to a competent and disinterested umpire or, if necessary, a judge. The bill also extends the appraisal provision to third-party claimants in cases where there is a disagreement with the insurer regarding the valuation of a loss. The definitions of "competent and disinterested appraiser," "offer of settlement," and "third-party liability claim" are also clarified within the bill. The act will take effect 90 days after enactment and will apply to claims filed and offers made thereafter.