An administrative law judge found in favor of American International Group, Inc. (AIG) subsidiary American International Insurance Company of New Jersey (AIIC), on eight of ten issues in a dispute with the New Jersey Department of Banking and Insurance.
AIIC estimates that the decision corresponds to a 17.6 percent increase to its automobile insurance rates. However, this ruling can be modified or rejected by the Commissioner of Banking and Insurance.
Judge Louis McAfoos issued his ruling on July 2, 2001, nearly four months after hearings held in March. This was preceded by a six month process including review of AIIC’s rate filing by the Department of Banking and Insurance and preparations for the contested rate hearing. Should the Commissioner modify or reject Judge McAfoos’ ruling, AIIC could appeal. Final resolution could take another year or more through the appellate courts.
Was this article valuable?
Here are more articles you may enjoy.