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Med Mal News
New Jersey Insurer Fights Act Gagging Derogatory Commercial Speech
The New Jersey Physicians United Reciprocal Exchange (NJPURE), a doctor-run medical malpractice insurer, has brought suit in federal court seeking to block the New Jersey Department of Banking (DOB) from enforcing a law that bars it from criticizing its competitors. The insurer argues that the Insurance Trade Practices Act, codified at N.J.S.A. 17:29B-4, is unconstitutional on its face because it prohibits the exercise of free speech and is vague and overbroad.
The suit was prompted by the DOB's accusation that NJPURE violated the Act by making false and derogatory statements about other medical malpractice insurers, including by saying that some of them faced solvency problems or were less than honest with their insureds. NJPURE says the advertising materials at issue contained only true statements and that they were disseminated in order to educate doctors about financial issues that could affect them. It claims it relied on publicly available reports for its information.
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