The National Association of Mutual Insurance Companies (NAMIC) praised the recent New Jersey Senate passage of a bill to begin the
needed reform of the state’s auto insurance market.
By a vote of 28-5, the Senate approved the New Jersey Automobile Insurance Competition and Choice Act, S63 SCS.
“This is a significant step on the road to reform,” said Neil Alldredge, NAMIC state relations manager. “The senate can be justifiably proud of its action to pass this historic legislation.”
The bill would phase out the “take all comers” provisions of the current law. Insurers would also have a broader range of “flex” rating. The legislation would alter the current excess profits law and would allow an easier exit from the market. Several administrative functions would be consolidated and new fraud provisions are also created.
The measure now moves to the Assembly for consideration.
Alldredge also praised the leadership of the Insurance Council of New Jersey. “The ICNJ provided unwavering support and their leadership should be lauded,” Alldredge continued.
State lawmakers must move swiftly to modernize the state’s auto insurance laws before the market deteriorates further,” said John Tiene, ICNJ President. “The market situation is deteriorating more each day and consumer frustration is growing in the absence of action.”
The Commerce Committee referred the bill to the full Senate on Monday.
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