Auto Insurance
Jersey Car Insurer Fees ‘Pulled Out of Air’ in ‘84
The fees and commissions that automobile insurance companies were allowed to collect for servicing New Jersey’s Joint Underwriting Association when it began in 1984 were ‘’literally pulled out of the air,'’ a member of a state study panel said today.
The fees and commissions that automobile insurance companies were allowed to collect for servicing New Jersey’s Joint Underwriting Association when it began in 1984 were ‘’literally pulled out of the air,'’ a member of a state study panel said today.
The panelist, William J. Doyle, executive director of the Independent Insurance Agents of New Jersey, said he was also a member of a committee that helped establish the underwriting association in line with a 1983 law. The association was formed to cover high-risk motorists who were unable to buy insurance on the open market, but it has grown to provide insurance for nearly half of New Jersey’s four million drivers.
The fees paid to the servicing carriers were subsequently viewed as too generous and were reduced.
‘’They came down, maybe not enough or quick enough,'’ Mr. Doyle said. ‘’But we made a mistake, no doubt about it.'’ Insurance Rates Rising
Mr. Doyle is now a member of the 16-member Auto Insurance Study Commission, which held a hearing today to review the underwriting association’s operation and the affordability of auto insurance in the state. Motorists have seen their rates rise since the enactment of the 1983 law, even though it was promoted as a way to reduce costs. The study panel includes representatives of the insurance industry, consumer groups, lawyers and state officials.
More : query.nytimes.com
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