The Property Casualty Insurers Association of America (PCI) has congratulated U.S. Senator Jon Corzine for his successful election as the next governor of New Jersey, and while PCI looks forward to working with him, it urges Corzine and state leaders to continue making positive reforms in the state’s auto insurance market.
“The New Jersey auto insurance market has come a long way in the past several years, and we hope that Gov. Corzine and state leaders will continue to keep reform of the state’s auto insurance market as a priority during the next year,” said Richard Stokes regional vice president for PCI. “After 30 years of mismanagement, the turnaround has been significant. Current insurers have maintained or increased business and new insurers have entered the market giving consumers more choices and greater competition.”
These positive indications are reportedly a radical departure from New Jersey’s troubled past.
Prior to the enactment of the Auto Insurance Competition and Choice Act in June 2003, the state’s auto marketplace was one of the least competitive in the country. Over 20 insurers had pulled out of the market in the previous 10 years, citing excessive regulation, including long lag times in rate setting, an excess profit charge, the inability to adjust prices and a territorial rating system designed to subsidize urban drivers. Four of the six largest auto insurers did not do business in New Jersey and drivers were reportedly forced to wait to obtain insurance if they could obtain coverage.
Some of the current state insurance issues are the Supreme Court decision regarding DiProspero v. Penn; legislation regarding the use of aftermarket parts; monitoring the Public Advocate’s programs regarding insurance; underground oil tank coverage and privacy issues.
“For the benefit of state auto insurance consumers, we hope state leaders continue to pay significant attention to these matters and continue moving in the direction of positively reforming the state’s auto insurance market,” added Stokes.
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