INSURANCE CLAIM DENIAL APPEAL

(New Jersey – Court-Ready Template)

[// GUIDANCE: This template is purposely drafted in contract-style form to satisfy the “REQUIRED DOCUMENT ARCHITECTURE” specified in the instructions while remaining fully adaptable to any insurance-claim context (health, property, casualty, disability, etc.). Practitioners may streamline or delete inapplicable sections for a simple appeal letter, or retain the full architecture when the dispute is likely to escalate into litigation or regulatory review.]

TABLE OF CONTENTS

1. Document Header
2. Definitions
3. Operative Provisions
4. Representations & Warranties
5. Covenants & Restrictions
6. Default & Remedies
7. Risk Allocation
8. Dispute Resolution
9. General Provisions
10. Execution Block

1. DOCUMENT HEADER

1.1 Title

ADMINISTRATIVE APPEAL AND FORMAL DEMAND FOR REVERSAL OF CLAIM DENIAL

1.2 Parties

This Administrative Appeal (the “Appeal”) is submitted as of [EFFECTIVE DATE] (the “Effective Date”) by [INSURED NAME] (“Appellant” or “Insured”), residing/located at [INSURED ADDRESS], to [INSURANCE COMPANY LEGAL NAME], a[n] [STATE OF INCORPORATION] insurance company with its principal place of business at [INSURER ADDRESS] (“Insurer”).

1.3 Recitals

A. Insured is the policyholder or beneficiary under Policy No. [POLICY NUMBER] (the “Policy”), issued by Insurer and in full force and effect at all relevant times.

B. Insured submitted Claim No. [CLAIM NUMBER] on [ORIGINAL CLAIM DATE] (the “Claim”) for covered losses/benefits arising from [BRIEF DESCRIPTION OF LOSS / MEDICAL SERVICE] (the “Loss”).

C. On [DENIAL DATE], Insurer issued a denial letter (the “Denial Letter”) refusing coverage/payment in whole or in part.

D. Pursuant to (i) the Policy, (ii) applicable New Jersey insurance law and administrative regulations, and (iii) all contractual and statutory duties of good faith and fair dealing, Insured timely files this Appeal to demand reversal of the Denial Letter and immediate payment of all amounts due.

NOW, THEREFORE, in consideration of the mutual covenants set forth herein and intending to preserve all rights and remedies, the Parties acknowledge and agree as follows:

2. DEFINITIONS

For purposes of this Appeal (capitalized terms used but not defined herein have the meanings set forth in the Policy):

“Appeal File” – Collectively, this Appeal, all exhibits, supplemental evidence, expert reports, medical records, invoices, photographs, witness statements, and prior correspondence concerning the Claim.

“Bad Faith” – Any action or omission by Insurer that violates its statutory or common-law duty of good-faith claim handling under New Jersey law, including but not limited to unreasonable delay, inadequate investigation, or withholding benefits without a fairly debatable basis.

“Business Day” – Any day other than Saturday, Sunday, or a day on which New Jersey state courts are officially closed.

“Claim Payment” – The full amount of covered benefits or indemnity, including interest, attorneys’ fees, and statutorily allowable penalties, sought by Insured under the Policy.

“NJ Insurance Law” – All relevant provisions of the New Jersey statutes and regulations governing insurance claim handling and appeals, including applicable time limits, procedural requirements, and unfair claims settlement standards.

3. OPERATIVE PROVISIONS

3.1 Appeal Submission

(a) Insured hereby formally APPEALS the Denial Letter in its entirety.
(b) This Appeal is filed within the earlier of (i) the Policy’s contractual appeal period, or (ii) the [STATUTORY APPEAL DEADLINE] mandated by NJ Insurance Law.

3.2 Supporting Documentation

The Appeal File is enclosed or delivered concurrently via [DELIVERY METHOD]. Insurer shall acknowledge receipt in writing within five (5) Business Days.

3.3 Requested Relief

Insured demands:
1. Reversal of the Denial Letter;
2. Immediate Claim Payment in the total amount of $[AMOUNT] within fifteen (15) Business Days;
3. Statutory interest from the original date benefits were due; and
4. Confirmation that no adverse underwriting or reporting action will be taken against Insured as a result of this Claim.

3.4 Conditions Precedent

Insured has satisfied all conditions precedent under the Policy and applicable law, including timely notice, proof of loss, cooperation, and exhaustion of any prerequisite administrative remedies.

3.5 Performance Standards

Insurer shall (a) conduct a full, fair, and prompt review; (b) provide a written decision citing Policy provisions and factual bases; and (c) comply with all time limits mandated by NJ Insurance Law (currently [INSERT DAYS, e.g., 45 DAYS] for an internal appeal decision).

4. REPRESENTATIONS & WARRANTIES

4.1 Insured

(a) All facts stated herein and in the Appeal File are true, complete, and accurate to the best of Insured’s knowledge.
(b) Insured has not assigned or otherwise transferred any rights in the Claim, except as disclosed in writing.

4.2 Insurer

By accepting this Appeal, Insurer reaffirms that:
(a) It is duly licensed and authorized to transact insurance in New Jersey;
(b) It shall handle the Appeal in compliance with NJ Insurance Law and the Policy; and
(c) Its representatives have full authority to bind Insurer in resolving this Appeal.

4.3 Survival

The representations and warranties herein survive resolution of the Appeal and any subsequent litigation or settlement.

5. COVENANTS & RESTRICTIONS

5.1 Insured Covenants

Insured shall:
(a) Provide reasonable access to additional documentation upon written request; and
(b) Refrain from duplicative filings with the New Jersey Department of Banking and Insurance (“DOBI”) during the pendency of Insurer’s internal review period, unless Insurer defaults.

5.2 Insurer Covenants

Insurer shall:
(a) Maintain complete claim notes and make them available upon written request;
(b) Communicate solely through counsel once counsel appears;
(c) Preserve all evidence relevant to the Claim to avoid spoliation.

6. DEFAULT & REMEDIES

6.1 Events of Default

(a) Insurer fails to issue a timely, substantively compliant decision;
(b) Insurer fails to pay the Claim Payment when due;
(c) Insurer otherwise violates NJ Insurance Law or the Policy.

6.2 Notice & Cure

Insured shall provide written notice of default; Insurer shall have ten (10) Business Days to cure, unless a shorter statutory period applies.

6.3 Remedies

If default is not cured, Insured may:
1. File an administrative complaint with DOBI;
2. Commence civil action in a New Jersey state court of competent jurisdiction, seeking:
a. Compensatory damages up to Policy Limits;
b. Consequential damages, interest, costs, and attorneys’ fees; and
c. Extra-contractual and punitive damages for Bad Faith, where permitted.
3. Seek temporary or preliminary injunctive relief compelling Claim Payment.

[// GUIDANCE: New Jersey recognizes a private cause of action for insurer bad faith sounding in contract and tort. Practitioners should evaluate punitive-damage caps and pleading standards prior to suit.]

7. RISK ALLOCATION

7.1 Indemnification

No additional indemnification provisions apply; rights and obligations are governed by the Policy.

7.2 Limitation of Liability

Insurer’s contractual liability remains subject to the Policy Limits; no limitation applies to extra-contractual Bad Faith damages where awarded by a court.

7.3 Force Majeure

Performance deadlines herein are tolled only for force-majeure events that prevent physical submission or processing of the Appeal; routine operational delays are expressly excluded.

8. DISPUTE RESOLUTION

8.1 Governing Law

This Appeal and any ensuing dispute are governed by NJ Insurance Law without regard to conflict-of-laws principles.

8.2 Forum Selection

Exclusive forum shall be the state courts of New Jersey, [COUNTY] Vicinage, unless the Parties mutually agree in writing to optional arbitration under Section 8.3.

8.3 Optional Arbitration

Either Party may elect binding arbitration administered by [ARBITRATION BODY, e.g., AAA] under its prevailing commercial rules by serving written notice within thirty (30) days after Exhaustion of Internal Appeals.

8.4 Jury Trial Preservation

Nothing herein constitutes a waiver of the constitutional right to trial by jury.

8.5 Injunctive Relief

The Parties acknowledge that monetary damages may be inadequate; each Party retains the right to seek injunctive or equitable relief, including but not limited to an order compelling Claim Payment.

9. GENERAL PROVISIONS

9.1 Amendment and Waiver – May occur only by written instrument signed by both Parties.

9.2 Assignment – Neither Party may assign rights or delegate obligations relating to this Appeal without prior written consent, except as required by law.

9.3 Successors and Assigns – This Appeal binds and benefits the Parties and their permitted successors and assigns.

9.4 Severability – If any provision is held invalid, the remaining provisions remain enforceable to the fullest extent permitted by law.

9.5 Integration – This Appeal, together with the Appeal File, constitutes the entire agreement with respect to the Appeal subject matter and supersedes all prior or contemporaneous communications.

9.6 Counterparts – This Appeal may be executed in counterparts (including electronically), each of which is deemed an original and all of which together constitute one instrument.

9.7 Electronic Signatures – Electronic signatures are deemed to have the same legal effect as original signatures under applicable federal and New Jersey law.

10. EXECUTION BLOCK

IN WITNESS WHEREOF, the Parties hereby execute this Appeal as of the Effective Date.

[NOTARIZATION BLOCK – use if Policy or NJ law requires sworn statements]
State of New Jersey )
County of ____) ss.:

On this _ day of _, 20__, before me, the undersigned Notary Public, personally appeared ________, proved to me through satisfactory evidence of identification to be the person whose name is signed on this Appeal and acknowledged to me that he/she executed the same.

Notary Public, State of New Jersey
My commission expires: ____

[// GUIDANCE:
1. Attach all supporting exhibits as separate, consecutively labeled tabs (e.g., Exhibit A – Denial Letter; Exhibit B – Medical Records; Exhibit C – Expert Report).
2. Calendar all statutory and contractual deadlines immediately upon filing.
3. Consider simultaneously sending a courtesy copy to DOBI to pre-position a regulatory complaint if Insurer fails to act.
4. Preserve all communications and claim notes to support any future Bad Faith action.]