NEW JERSEY DRIVERS START GETTING STATE FARM POLICIES RENEWED.
McGreevey said State Farm and other auto insurers were finding New Jersey has a more stable, predictable and fair auto insurance marketplace since auto insurance reform legislation was signed into law in June.
The legislation was called for in a market stabilization order issued June 25, 2002, by New Jersey regulators that also required State Farm's New Jersey affiliate, State Farm Indemnity, to continue providing auto insurance in the state until January 2006.
State Farm Indemnity had asked to leave because of the financial instability it was incurring as a result of its New Jersey coverage, after insurance regulators in Illinois, where the company's headquarters are located, ordered it to become more financially stable.
To help the insurer become more viable, the order directed it to not renew approximately 4,000 policies per month.
New Jersey Insurance Commissioner Holly Bakke said the company had met all the financial targets outlined in the order on and even ahead of schedule.
The Alliance of American Insurers also recently singled the state out for "a change in attitude and increased efforts" in fighting insurance fraud.
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|Publication:||Liability & Insurance Week|
|Date:||Oct 13, 2003|
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