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 will then have 20 business days to assess the loss and provide their evaluations.

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, who will make a final determination. The bill also extends the appraisal provision to third-party claimants in cases where there is a disagreement over the valuation of a loss that affects settlement offers. The definitions of "competent and disinterested appraiser," "offer of settlement," and "third-party liability claim" are also clarified within the bill. This legislation is set to take effect 90 days after enactment and will apply to claims and settlement offers made thereafter.