STATE FARM RE-ENTERS N.J.:

State Farm Indemnity Company and the Department of Banking and Insurance have reached an agreement allowing for the insurer’s re-entry into the New Jersey auto insurance market. Effective Jan. 1, 2005, State Farm will once again write new auto insurance business, but will do so on a gradual basis as it phases back into the market. Also effective Jan. 1, 2005, State Farm Indemnity will implement a voluntary 3.8 percent average rate reduction for private passenger auto insurance customers. This rate reduction will be the fourth in 18 months and will mean that Indemnity has reduced rates by an average of 15 percent since July 2003. Indemnity–State Farm’s auto-only New Jersey subsidiary–committed to review its withdrawal decision by the end of 2005, but did so ahead of schedule. “In light of the positive changes we’ve seen in the New Jersey insurance regulatory environment, we made our decision earlier than planned,” said Brian Boyden, president.

Topics New Jersey