Recently, physician clients of Frier Levitt who were formerly insured by NJ PURE received formal letters regarding the company’s financial health and the potential for state intervention. If you are among those who have received such notice, it is critical to understand what this means for you, your practice, and any open or anticipated future malpractice claims.
NJ PURE’s Financial Condition
NJ PURE is evidently under scrutiny by the New Jersey Department of Banking and Insurance (“DOBI”) as the company’s ability to meet its financial obligations is in question. As of March 31, 2025, NJ PURE reported $17.5 million in total assets and 160 claims in litigation.
Under New Jersey law, if an insurer’s financial condition is found to be impaired or insolvent, DOBI’s Commissioner can petition the court to place the company into “rehabilitation.” This is a legal process where the state takes control of the insurer’s operations in hopes of restoring financial stability. If rehabilitation fails, the next step is “liquidation,” where the company’s assets are distributed to creditors and claimants, and the insurer ceases operations.
Impact on Physicians Insured by NJ PURE
If NJ PURE is placed into rehabilitation or liquidation, the handling of malpractice claims changes dramatically. The Insurance Commissioner would take over the company, and all claims could be processed according to statutory procedures. Importantly, the New Jersey Property-Liability Insurance Guaranty Association (“NJPLIGA”) would step in, but with significant limitations: the maximum amount available per claimant is capped at $300,000.
PLIGA’s impact can mean that if a malpractice claim against a provider results in a judgment (or settlement) above $300,000, that provider could be personally responsible for any amount exceeding the cap. Additionally, the process of presenting and resolving claims through the liquidation process can be lengthy and uncertain, potentially leaving you and your practice at risk.
The current situation presents a time-sensitive opportunity for physicians facing open claims. Plaintiffs can still negotiate settlements within the policy limits while NJ PURE remains operational. Once the company enters rehabilitation or liquidation, the process becomes more complicated, and the risk of unpaid or partially paid claims increases, which can thereby increase personal risk.
How Frier Levitt Can Help
Our firm has extensive experience navigating insurance matters and working with medical malpractice claims adjusters. Contact Frier Levitt so we can assist you in assessing your current risk exposure with NJ PURE if you have a pending or anticipated claim. Our firm can serve as personal counsel to assist you in communicating effectively with NJ PURE and their assigned defense counsel to strategically push for settlements before the company’s financial situation deteriorates further.
If you have received a notice from NJ PURE, or if you have open malpractice claims, now is the time to act. The window to resolve claims efficiently and within the available coverage may be closing soon.
