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 related to an automobile claim, or concerning the settlement offer 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 must then complete their assessment within 20 business days, and if they cannot reach an agreement, the matter can be escalated to an umpire or a judge for resolution.

Additionally, the bill extends the appraisal provision to third-party claimants in cases where there is a disagreement with the insurer over the valuation of a loss that affects the settlement offer. The definitions of "competent and disinterested appraiser," "offer of settlement," and "third-party liability claim" are also clarified within the bill. The act is set to take effect 90 days after enactment and will apply to claims filed and offers made from that date forward.