An out-of-state driver whose insurance carrier does not do business in New Jersey cannot invoke the verbal threshold as a defense in a New Jersey lawsuit over an accident that occurred in this state, the state Supreme Court held Thursday.
The justices reasoned that because carriers not authorized to do business in New Jersey are not required to pay the Personal Injury Protection benefits required under the state’s no-fault insurance system, they are not entitled to the quid pro quo of limited liability.
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