The Professional Insurance Agents of New Jersey announced that it supports the The Department of Banking and Insurance proposal to amend physical damage inspection regulations by giving insurance companies the option not to require policyholders to provide photographs of their vehicles prior to issuing physical damage coverage.
“This amendment is ultimately in the interest of the insurance-buying public,” stated Steven Reichman, CIC, PIANJ president. “An insurer will be able to weigh the benefits and cost of obtaining pictures of vehicles, and the savings he or she incurs may be passed on to the policyholder.”
The PIANJ also urged that the current rules on the “deferral period,” be amended. A physical damage inspection must now be completed within seven days, but Reichman indicated that in “today’s current market conditions” it was difficult for consumers to fulfill this condition, and the time period should be extended.
Reichman explained that since most insurers are now utilizing the “five-day binding rule” many times producers are not notified by an insurer that coverage has been provided until after the effective date of coverage. Producers must then mail to the insured the prescribed inspection forms that specify the policy effective date and the date by which the inspection is to be completed.
“By the time the policyholder obtains the forms, there may be only a few days left in which to obtain the inspection. If the policyholder misses this time, his or her physical damage coverage is suspended,” Reichman stated.
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