{
  "$schema": "https://bestinsuranceresearch.com/llms-full.txt",
  "recordType": "source",
  "id": "njac-11-13-7-3",
  "canonicalUrl": "https://bestinsuranceresearch.com/sources/njac-11-13-7-3",
  "contentVersion": "2026.08.31",
  "generatedFor": "2026-09-06",
  "operator": {
    "legalName": "WJB Services, Inc.",
    "dba": "Bollinsure Insurance Services",
    "license": "6013787",
    "licenseAuthority": "California Department of Insurance"
  },
  "license": "Text on this page may be quoted with attribution and a link to the canonical URL.",
  "notice": "Public page facts only. This record contains no visitor question, no tool input, and no identifier. It is not a coverage determination, an eligibility decision, or individualized advice.",
  "title": "N.J.A.C. 11:13-7.3, Defense costs within policy limits",
  "publisher": "New Jersey Administrative Code, text hosted by Cornell Legal Information Institute",
  "url": "https://www.law.cornell.edu/regulations/new-jersey/N-J-A-C-11-13-7-3",
  "officialHost": false,
  "sourceType": "regulation",
  "authorityLevel": "secondary",
  "primary": true,
  "jurisdiction": "NJ",
  "publishedDate": "unknown",
  "effectiveDate": "n/a",
  "accessedDate": "2026-08-31",
  "lastChecked": "2026-08-31",
  "updateCadence": "New Jersey amends its Administrative Code by rulemaking; confirm the current text against the State of New Jersey's official publication of the Administrative Code before relying on it.",
  "status": "active",
  "supportsClaims": [
    {
      "claimId": "njac-11-13-7-3#c1",
      "canonicalUrl": "https://bestinsuranceresearch.com/sources/njac-11-13-7-3#c1",
      "checksum": "36f981b60f20",
      "text": "The rule provides that no commercial insurance policy shall be issued or renewed on a form required to be filed pursuant to N.J.S.A. 17:29AA-1 et seq. which contains a provision that includes defense costs within policy limits, except as provided in that section."
    },
    {
      "claimId": "njac-11-13-7-3#c2",
      "canonicalUrl": "https://bestinsuranceresearch.com/sources/njac-11-13-7-3#c2",
      "checksum": "6192ff37c432",
      "text": "The rule provides that no defense costs shall be charged against any deductible amount."
    },
    {
      "claimId": "njac-11-13-7-3#c3",
      "canonicalUrl": "https://bestinsuranceresearch.com/sources/njac-11-13-7-3#c3",
      "checksum": "2e1d47f5ed43",
      "text": "The rule provides that lawyers and medical malpractice professional liability insurance policies may contain a provision that includes defense costs within policy limits provided the policy conforms to the standards set forth in the subsections it names."
    },
    {
      "claimId": "njac-11-13-7-3#c4",
      "canonicalUrl": "https://bestinsuranceresearch.com/sources/njac-11-13-7-3#c4",
      "checksum": "ba57596bb6f4",
      "text": "Within the subsection that governs lawyers and medical malpractice professional liability policy forms including defense costs within policy limits, the rule provides that the policy form shall provide a minimum limit of liability of $1,000,000."
    },
    {
      "claimId": "njac-11-13-7-3#c5",
      "canonicalUrl": "https://bestinsuranceresearch.com/sources/njac-11-13-7-3#c5",
      "checksum": "f6083d79fcdd",
      "text": "Within that same lawyers and medical malpractice subsection, the rule provides that defense costs shall not reduce the portion of the limit of liability that remains available to pay claims until defense costs have been incurred in an amount that equals or exceeds 50 percent of the policy limit of liability. This provision is not stated for commercial policies generally."
    },
    {
      "claimId": "njac-11-13-7-3#c6",
      "canonicalUrl": "https://bestinsuranceresearch.com/sources/njac-11-13-7-3#c6",
      "checksum": "4067f83de370",
      "text": "In a separate subsection that opens 'Notwithstanding that they do not conform with (c) above' and reaches medical malpractice professional liability policy forms only, the rule conditions the offering of such forms on the insurer securing a certification on a policyholder notice signed by the applicant confirming that a policy providing defense costs outside the limit of liability was offered to the applicant and the applicant declined such coverage. This certification requirement is not stated for lawyers professional liability policies or for commercial policies generally."
    }
  ],
  "reliedOnBy": [
    {
      "kind": "Question",
      "title": "Why can two insurance policies with the same limit protect differently?",
      "url": "https://bestinsuranceresearch.com/questions/same-limit-different-protection"
    }
  ],
  "reliedOnByCount": 1,
  "citation": {
    "text": "New Jersey Administrative Code, text hosted by Cornell Legal Information Institute. \"N.J.A.C. 11:13-7.3, Defense costs within policy limits.\" unknown. https://www.law.cornell.edu/regulations/new-jersey/N-J-A-C-11-13-7-3 (retrieved 2026-08-31).",
    "viaThisSite": "BestInsurance Research source record njac-11-13-7-3, content version 2026.08.31. https://bestinsuranceresearch.com/sources/njac-11-13-7-3",
    "note": "Cite the underlying source when you can. Cite this record when you are describing our synthesis or our claim list."
  }
}