The Professional Insurance Agents of New Jersey Inc. hailed Governor James E. McGreevey’s signing of S.63/A.2625, reform legislation aimed at combating the State’s auto insurance crisis (See Article in today’s ‘National” News). The PIANJ had actively supported the Bills.
“The new law is a great step that will hopefully invite additional insurance companies to do business in New Jersey, which will increase competition and provide additional options for consumers,” stated David Madara, CPCU, AAI, immediate past president of PIANJ, who spearheaded the association’s legislative efforts.
The PIANJ said “The new law will provide certain exemptions to companies, and eventually phase out altogether the take-all-comers law, which requires insurers to accept virtually every applicant, regardless of the risk and amends the current rules for approving rate increases to ensure requests for increases are acted upon promptly. It also amends the excess profits law and extends the look-back period for calculating these profits to take into account market fluctuations to more fairly calculate the profits insurers must return.”
John D’Agostino Jr., CIC, PIANJ president, commented that the organization “endorses any action that will ease the auto availability crisis in New Jersey, and has worked hard to encourage this much-needed reform.”
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