New Jersey Insurance

Your editorials about my plan for reforming auto insurance in New Jersey (”No-Fault error New Jersey”25. January) correctly pointed out that automobile insurance rates will drop over 20 per cent, but it wrongly suggests that the plan ignores the problems of false insurance claims and repair of fraud.

On the contrary, I have a proposal for tough action against serious forms of fraud and theft.

Like an effective system in New York, New Jersey Institute, a photo of mandatory inspection of law. Satisfied that the car photo, to ensure that they exist and are not damaged. We expect this to reduce fraud and theft in New Jersey, where he was in New York.

In addition, insurance companies are required to make their own plans to reduce fraud and theft or face sanctions, reducing premiums for Collison and comprehensive coverage.

Other reforms I have proposed, such as the elimination of free arrangements for insurance companies and the cessation of the use of age, sex and family situation, phrases, is the assurance of a rationalization of the environment. New Jersey driver is correctly believe that the auto insurance system is unfair and that insurance costs too. These and other changes are a fair and rational system of insurance for the first time in many years.

New Jersey already has a no-fault system effective, much the same as that of New York. Slightly more people to pay for the option to lodge a complaint, but it is a small percentage of drivers, and they pay for the privilege, with higher prices. Évitable attorneys and legal costs are no longer the issue in New Jersey.

My proposal is recovering and fair play vis-à-vis auto insurance. For too long New Jersey drivers have been deceived by a control system. It is high time for auto insurance work for the benefit of consumers.

Dir Jim Florio won a test of wills with a giant insurance of the nation last week, but about the war, is ultimately pay the bills for utilities $ 3 billion auto insurance fiasco is certainly too long.

Dir Jim Florio won a review of the nation Wills with a giant insurance last week about the war but ultimately pay the bills for utilities $ 3 billion auto insurance fiasco is certainly too long.

Governor Florio and the commissioner of insurance, Samuel Fortunato, sent a message to insurance companies, they could not go beyond the background image, it has created, through the provision of million drivers in the town of Underwriting Association, funded by the State Insurance Pool, while ensuring that the best risks.

What does the state, was said ITT Hartford, one of the largest insurers of the nation, when she wanted to take advantage of self-insurance business in New Jersey, he would have had to abandon a lucrative business lines such as health and owners of politics as well. ”If they do not respect the rules of the game, a folle”a says Florio,”we will not allow them to sell us something.”

The Hartford’s chairman and president, Donald Frahm, and again the company announced intention to withdraw from the market for automobile insurance in the country.

The reason was quite clear: the company automobile insurance private business in the state, amounting to $ 17 million per year, but all its business activities - including health , Life, homeowners and other policies - just $ 308 million.

He said Frahm,”when it is necessary to continue to write automobile insurance in New Jersey, for the remainder of their business, Hartford do so.”

But this is not the end, either Ford or hard for the other 32 auto insurers - including Allstate, which provides 450000 pilot in the state - have the status of a petition to revoke or leave it announced don ‘t write auto insurance in the state, under their new rules.

ITT Hartford has already brought to justice for the new rules, so far without success, and it may go back to win the right to guarantee the rule of automobile insurance. Two other complaints are against the new rules, a court in the state and a federal court.

The new rules, by the Florio administration and the legislature last February in response to the financial disaster by the existing system, are not much difference from most other countries with an important difference: You ask the insurer to pay at least $ 1.4 billion of the Joint Underwriting Association’s deficit of $ 3 billion under the old system.

Poor insure risks

Officials of State recognize the old system was poorly designed. But they also say that insurance companies, it adopted, and now to export, far from the fair, they were pioneers in the development.

The Joint Underwriting Association began in 1984 as a means to ensure risque”armen”pilot did not have insurance on the commercial market. Instead, is provided by companies such as Allstate or Hartford, these drivers were provided by the State. Your premiums went to the state and their claims have been paid by the state.

But insurance companies manage the system. They decided in the state-Pool, and they came the rights to decide, as the abundance of the state to pay.

The insurance companies involved not only the poor risks and pilots on the status of the pool, but also all drivers, apparently any risks. If, however, a commission of 8 per cent of the policy, companies more money, risk free, more political, “she wrote.

The result was that two years ago, 53 percent of drivers of State for the swimming pool at high risk.

New Jersey-pilot were the nation’s most high-paying auto insurance premiums. Dir Jim Florio promised, for her, and did it. But Allstate Insurance Company and others say, they lose money, and we want.

Rising insurance premiums are a worsening of the country. But something is clearly wrong in New Jersey. It is unclear, debt takes. A path for curbing may come from other countries. Several other countries offer educational models.

Insurers criticized the debt of greed and inefficiency national trends in higher prices. The repair of debt and higher medical costs, attorneys’ fees and jury trials. In New Jersey, they call it, population density, highways and cars, and a high rate of accidents and theft.

435000 car insurance Allstate New Jersey - far more than anyone else. He said he had lost money to them for years. Governor Florio, Allstate said about the accountability is wrong and that the company does well. But this is more a battle of accounting.

New Jersey has a low no-fault insurance law in 1972 that we still have for the cost of transporting people and losses of more than $ 200. Later, reforms even more serious. With time has come Mr. Florio, a state-run company allegedly uninsurable was driving to insurance to half of drivers of State rate artificially low and took an advance of $ 3 billion deficit.

Mr. Florio has a better no-fault law and the judgement of the insurer under public law, but certain conditions, insurers do not like it. For example, premiums should be primarily on a driver was not to these traditional criteria such as age, sex and where the driver is alive.

Michigan is far better than the no-fault law. It requires distinctions generous enough to actual costs. But he can appeal that if a person dies or seriously affected. PA has yet another approach much more promising: consumers have a choice between the least expensive, with a lid over the scarcity of costumes, or more costly and more political freedom latter. Other states - New York among them - are known for effective regulation and fair. Others have problems such as New Jersey’s.

Allstate withdrawal of New Jersey is progressive, it must continue to operate until all new members have their coverage. But the withdrawal of a large insurer, other smaller insurers and perhaps more, said at least that the State must have gains and losses resulting from its new law.

As you will see in the state “pause breastfeeding status About Car Insurance” (editorial, Sept. 24), auto insurance is a crucial problem in many countries and the universal truth is that prices are too high for drivers comfortable. However, automobile insurance rates can be reduced, if costs are reduced.

In New Jersey, as you point out, we lowered the rates of throwing the old system, costs are encouraged. It lays the Joint Underwriting Association, admitted that poor pilot of the pool, but ultimately cause more than half of drivers and the state has a debt of over $ 3 billion.

But we did much, much more. New Jersey has a good option no-fault, and it is a choice of 85 per cent of our pilot countries. He began a cost reduction of insurance. They suggest, New Jersey should look like Michigan and New York for ideas and not our fault option on the model of both.

We are limits to what companies can free towing and New York have adopted photo Inspection of the insurance system aimed at reducing fraud. We discounts mandatory for drivers to install security features and have asked the antitheft auto insurance companies offer incentives and the fight against fraud.

For the first time, we guarantee that good conduct to pay lower rates than bad drivers. And as Michigan, we are beginning to collect on criteria such as miles driven and number of deaths, injuries, rather than on arbitrary classifications. The bad pilot pool, we have put in place, it is more than New York. There are fewer than 10 per cent of the market, and only the driver, whose registration is it really deserved it. We have borders on fees payable for physicians and other providers of medical services, and to repeal the exemption agreements to increase the insurance company competition.

After a disastrous decade, New Jersey’s auto insurance are not problems solved overnight. Allstate We regret the decision to leave, but we also deplore the society convinced of the need for an increase of 28 percent. And while some might indicate that Allstate drawer other words, we need another look at our right, the company said it was losing money in New Jersey for 20 years, but it is the decision to leave, just five months after the date of our new Act in force.

I think a better approach would be to give the new Time Act fully exploited. We are serious reform in New Jersey, and our doors are open for each insurance company.

The Allstate Insurance Company, announced Monday she will try pull out of New Jersey, reports can have enormous losses in the state, especially auto insurance. But new data provided by the State Allstate regulatory authorities indicate that the offender maybe not that premiums are too low, that the company is doomed, but the failure of part of Allstate claims to remain in a state of the nation the highest rate of car theft. The data also indicate that Business Overhead is too expensive.

For its part, Allstate, said the information is not covered costs for businesses in emerging bailing out New Jersey’s commercial bankruptcy Underwriting Association, a state-run insurance company for drivers with questionable driving records.

The new information was collected by the State and regulatory authorities of the AM Best Company, the major research focuses on insurance shows that the year 1990, Allstate paid 79.4 cents in automatic mode receivables in the New Jersey, for every dollar of premium revenue. Allstate’s record in New Jersey was one of the poorest among the major insurers.

The business registration appears to be on the sidelines of diffferent Allstate’s auto claims experience elsewhere. And after the record consumer groups raised questions about Allstate’s assertion that the regulation unfair, ineffective is not malfunction or management, the company continued until Monday’s announcement.

At a press conference on Monday, Edward W. Young, Allstate Group’s Vice President of auto insurance, the company has used the figures show that Allstate had lost money in New Jersey for 20 years, both auto insurance and on the property and accidents that coverage in general.

For example, according to figures companies, Allstate lost $ 72.3 million in New Jersey auto insurance last year and $ 24.2 million from all property and accidents of politics. The latter figure includes not only the results of auto insurance, but also owners of domestic animals of politics, boat insurance, coverage in leisure and theft of vehicles and protection against fire companies sold.

Critics say, however, that Allstate total loss figures, the company cited several times in its requests increases, are not particularly significant or relevant. Critics say that since Allstate is able to control their Overhead - a great effort in calculating the overall result - a better measure of what the New Jersey equitable treatment of regulatory authorities, businesses, the report of the company at the expense of debt premiums admissible, it is paying.

For example, a report is that, compared to its competitors, indicate that the real problem is not unfair premiums low, say critics, but the inability of the Allstate retain their rights to expenditure under control. And if the report was in New Jersey, not all that different Allstate’s report was that the reports on policies in other countries, adding the criticism, it would be Allstate also suggests that the problem may be less The premium adequacy and effectiveness of its functioning New Jersey. Standings in the soil 20%

This is what the new information technologies mounting proposed by AM Best. Within five years expired on December 31, Allstate New Jersey’s auto insurance has been operating an average annual “loss calculation report” of 78.7 per cent, which means that for every dollar of income the first car in the Group, paid 78.7 cents on claims.

Allstate placed in the bottom 20 per cent of 50 major insurers rank with regard to their ability to maintain rights. Similarly, the company last year paid about 74 cents of federal claims for every dollar of premium income by AM Best, less than a nickel in New Jersey.

Regarding homeowners’ insurance, AM Best, the figures still raise serious questions about Allstate’s assertion that the punitive regulations, it grows in New Jersey. The data show that Germany, Allstate paid on claims from 77.3 cents last year for each of dollars in premiums for homeowners. ”

But in New Jersey claims the insurer was better than it is living in Germany: pay damages New Jersey own a house “policies reached 55.2 cents per dollar earned premiums. Individual experience with its favourable in New Jersey, Allstate still able to rank 34th among major insurers in terms of their capacity, hold you own a house claims resulting from the policy.

In your April 1st report on reductions in New Jersey auto insurance, you do not observe that the hotel Dir Jim Florio, former environment with the driver of the state - with one hand and to return to another. Some of us are more than others.

My wife and I are both working, and everyone needs a car, our places of employment. My wife led a 1986 Mazda, I drive a 1986 General Motors small pick-up truck.

Recently, I received my form for renewal of registration for the collection. The tax was last year, $ 56. This year it is $ 106.40. A renewal notice the shape recalls that 40 cents of that increase, which is, indeed, for the next six years for development (production is not?) Reflectorized vehicle registration, an excellent example of the definition priorities in close economic times.

The balance of the increase, or $ 50, is “to assist the financing of New Jersey insurance reform programme”, a message of renewal. The increase raised my fees for the collection of nearly 89 per cent, but wait. The increase in the car my wife in the same age as me, is just $ 15. There is no explanation why a standard half-ton collection, for essentially the same size, weight and dimensions as limousines on the road, it is surcharged $ 35 per year, more than the sedans. Even a new car is charged only $ 40 more per year for the first two years, but vans and trucks, regardless of their age, pay $ 50 per year.

The so-called reduction that the state has promised, on insurance premiums by registration fees higher for the next six years. The State is pocket-quality report what happened to insurance companies, which have expressed their intention to consult the file increases.

Reform of motor insurance has bedeviled New Jersey’s last two governors. Two of them, Thomas H. Kean and Jim Florio, proclaiming himself master of change and lower premiums. Finally, it has not succeeded, nor people and the nation to pay higher premiums and grumbling.

Now, as it prepares for a duration of their election, Dir Christine Todd Whitman has weighed a new plan to reduce premiums by 5 to 25 percent by the fight against fraud and motorists offers a selection of actions, to connect to economies reduced coverage.

In the early sparring partners, the industry seems pleased with the plan. John Tiene, Executive Director of the New Jersey Insurance News Service, whose companies are 70 per cent of government auto insurance, as the plan Whitman”fett and dynamic.”He said that the industry is ready to accept, Ms. Whitman’s automatic abolishing the annual cost of living and the premium increases its proposal for a ban on current practice, the refusal of the extension of certain policies, without explanation.

Steven Goldstein, a vice-chairman of the Insurance Information Institute, a trade association, praised her commitment für”weniger pain and Leiden”Klagen as clearly the appropriate means for reducing premiums.

But the president of the Association of Chapters of the State of Trial Lawyers of America, J. Gordon Harrison, rejected the plan Rückert Draconian”,” the assertion that could not be guaranteed the richest.

Although the administration has made some Whitman higher premiums, most of the issues that drive the state insurance rates higher, began long before Mrs. Whitman was governor. Here are a few factors:

* New Jersey has more miles by highway traffic than any other country, and many nonfatal crashes, but only learned of Texas and Wisconsin in 1994, last year, with such figures.

* Für”Schmerz complaints of neglect and Leiden’’sind generous. Politics generous, with an advantage of the highest in the country, produce high medical awards juries and payments to policyholders.

* Controls against insurance fraud, both government and industry are too low, say critics.

* The insurance sector maugrée on the borders of the State on profits, mandates that all motorists are insurance and limit values for fees Premium for pilots at greatest risk in urban areas. Kostspieligen underwriting policy to pay billions of debts upstream by an insurance pools, there was high risk, ill-pilot of the Kean and Florio years.

* Compounding years have been any relationship between acid industry in New Jersey and the progress of the study of Jurists. The lawyers have consistently fight against any restriction on drivers’ right to file negligence is injured by other road users. Restriction of these costumes of pain and suffering is the center of Ms. Rückert - insurance industry, the joy and consternation of the trial lawyers.

Many know the status of insurance problems say that lawyers have a greater voice in Trenton lobbying and that the fate of Mrs. Whitman’s legislative package in the east hinge to a large extent on both sides of willingness to compromise .

Today he is chairman of the State Bar Association, Cynthia M. Jacob, in response to its gentle on the plan Whitman. Tuesday, Fr Jacob, the association has provided support for research on reform. She said today that it is particularly heart ,”” Fr Rückert on the plan to reduce disputes and said all the commandments and prohibitions they würde””nominale on reducing premiums.

J. Robert Hunter, insurance director of the Consumer Federation of America, now offers a quick and easy, New Jersey’s auto insurance woes and what now appears a long legislative battle in Michigan’s simply no Fehler ”Right”auto insurance.

Only 11 countries around the country have no debt, including New Jersey and New York. Mr. Hunter said he considers the law of Michigan on the best the nation has no debt required by law because it violates motorists outages unlimited payments for their medical care and lost wages, and allows pain and suffering for actions that death, serious harm a function of fitness, and on the duration and serious disfigurement.

Given the objective of pocketbooks Out-of-State-pilot illegally register and insure their cars in New Jersey, state officials today filed complaints against civilians 200 people of New York, Connecticut and Pennsylvania. The complaints seek fines of up to $ 30000 per car.

State officials said, 125 motorists have claims over $ 300000. In one case, a New Yorker, owned five luxury cars, including a Rolls-Royce, paid a fine of $ 10000.

Although New Jersey’s average of the annual insurance premium of $ 900 to $ 1000 per vehicle among the highest in the nation, policies in urban areas of neighbouring countries may incur some costs to $ 3600, so that it is attractive for the use of a relative or friend Address in New Jersey for the acquisition of new Jersey to buy plates and insurance, “said Edward J. Dauber, Executive Assistant Attorney General.

Moreover, Connecticut capita annually could avoid paying the tax on cars, the amount to hundreds of dollars to delay expensive model car. Losing money pools

“We believe that the use of our insurance system Out-of-State residents adds approximately $ 100 on premiums for drivers of New Jersey,” said Dauber. He said, another study estimates that rights of motorists State false accounts based on residency for $ 400 million to 600 million total of $ 3 billion deficit in the common law of Underwriting Association and its successor, the market Transition Facility.

The actions against the Out-of-State-drivers was more difficult after the coup Insurance Fraud Prevention Act in January clearly stated erroneously that New Jersey, an address is an offence, regardless of whether the driver files more and more insurance. In the past, the State had to wait for a request was before he could file under the accusation that normally a $ 200 fine, “said Louis Parisi, director of fraud prevention insurance for New Jersey Department of Insurance.

According to the amended law, a car, the driver faces a fine of up to $ 5000 for a first offence, $ 10000 for a second and $ 15000 for a third. In addition, motorists to pay the insurance premiums are to avoid the misapplication of legal costs and could be forced to return to each type of insurance, they are entitled to receive payments. Mr. Dauber said the State expected to receive an average of $ 30000 for each of the defendants in which the civil action. “Make It dearly”

Mr. Dauber said that thousands of motorists were still illegally Register purchase of cars and insurance in New Jersey and that a task force would continue to insist court complaints against them.

New Jersey is the first state in the country to allow civil and costumes for insurance fraud, “said Parisi. “Motorists, submitting false information to circumvent insurance premiums are stolen,” he said. “Our intention is that this is very costly for them in the game.”

Mr. Parisi said he had heard that a lot of Out-of-State motorists were food office space get rid of automobile insurance of their recordings, New Jersey and buy insurance, where they live, as news about the tough approach has spread.

All the accused in the case of civil law under way in Superior Court here were found by rights insurance. Mr. Parisi said that while the rate of fraudsters come with an address in New Jersey, they did not care paper to create a legitimate way of residence. “You do not have a vote, no records on property taxes or Utility bills,” he said. An employee a little more clear as an address. Others have rented a mailbox and all investigators had to do was follow the e-mail to tenants of the Out-of-State address. Block Philadelphia

The insurance division was also successful implementation of the “sweeps” of urban areas, seeking plates from New Jersey. “If you with our plates of cars parked on a street in New York, the words” parking for residents and cars residence with terminal label, you’ve probably something, “he said.” We found a plumber to Brooklyn, was New Jersey plates on his truck passengers.

A poll this week aims to familiarize door news: For the sixth consecutive year, New Jersey drivers pay the highest car insurance premiums in the nation in 1998.

But a group lobbying the state of the automobile, the insurer complained that the investigation was misleading and do not increase during recent reductions in insurance rates.

”This gives people the false impression,’’said John Tiene, director of the Insurance Council of New Jersey.

Figures expected to be officially released later this week by the National Association of Insurance Commissioners show that New Jersey drivers pay an average of $ 1138 for its policy during the year 1998. Drivers in neighbouring countries much lower price paid: $ 960 in New York, Connecticut $ 901, $ 845 to $ 723 Delaware and Pennsylvania.

Tiene said drivers needed different countries at different levels of care, so that the comparison of premiums was not the only valid. He also stressed that quotas have been reduced in 1999.

New Jersey driver was paying on average $ 1161 in early 1999. This figure was $ 173.50, which represents about 15 percent after the state imposed mandatory reductions last spring. Until the end of 1999, drivers paid an average of $ 988.

The question of the investigation, Dir Christine Todd Whitman said:”At least they are 15 percent lower than last year, when we were the highest in the nation.”

New Jersey drivers have paid the highest average auto insurance in the nation since 1993 and assumed the dubious distinction of Hawaii.

Whitman said the governor of the party’s why high prices persist, GEOGRAPHY: New Jersey is a small country with a lot of drivers.

She also said she will continue to seek ways to lower prices, including the fight against fraud, Mrs. Whitman said added significantly the cost of self-insurance for the pilot of New Jersey.

Bill Heine, a spokesman for the State Department for banks and insurance companies, “said National Association of Insurance Commissioners does not include dividends paid to the policy of the new owner. But he was not sure whether dividends, ranking lists. State law requires insurers to repay the profits, if a company deserves more than 6 percent over a period of three years.

The national insurance group is considering releasing their final report before the end of this week. The final figures will not alter the positions of the USA, pay rates are higher, “said a spokesman, Bob Martin.

The president of the Insurance Committee legislator said today that Dir Christine Todd Whitman’s self-insurance has been watered, as long as it is unlikely that consumers save on their premiums for all.

The chairman of the committee Republican, Senator Gerald E. Cardinale and Assemblyman Scott Garrett, threw the beginning Assembly Republican leader of the weakening of the bill this week, under pressure from the state trial lawyers, earning millions of dollars in fees from the current system.

Your Eminence and Mr. Garrett complained that the main provision of the law on the fight against insurance fraud was killed by a committee of the Assembly on the orders spokesman Jack Collins. This provision would set up a specific group of doctors to check questionable and excessive costs of medical care, a system with the Namen”Peer Review.”

The recent dispute, two months after leaving the governor of a previous proposal to lower prices by offering significantly lower forms of reports. New Jersey’s automobile insurance rates - the highest in the nation - have been identified as a problem during the gubernatorial campaign, and Mrs. Whitman has assured that voters would prioritize efforts to reduce insurance bills by the fight against fraud.

But this measure has been further weakened. ”It seems to zero in these accounts, that everyone save costs, which,’’said today Senator Cardinale.

For his part, Mr. Collins said he was not convinced that peer review provision that would effectively reduced rates of VAT. And Trial lawyers have argued that such a system would indeed be consumers, easier for insurance companies to deny legitimate claims.

Whitman officials of the hotel, trying for the best interpretation of legislative measures on the said other provisions of fight against fraud in the bill would be to reduce auto insurance premiums by five percent, as ’said Mrs. Whitman pledge.

But Mr. Garrett, the chief of the Assembly Insurance Committee, said legislative action on the action in its watered-down form”, the public may believe, we do something to reduce costs, and we are not.”

In an unusual step on Monday that Mr. Collins bill insurance which are already passed, Mr. Garrett’s insurance committee last week, the Assembly of the policy and regulatory control committee for a second vote. This committee, which normally do not work on insurance, to weaken the bill after two hours of public testimony and discussion behind closed doors.

The Committee voted in favour of retaining the current system, where claims challenged by a body composed of lawyers, insurers complain almost all orders to pay debts. Although the commission also has a version Review des””Peer system doctors, drastically limiting the number of cases, to check that doctors would say, there must be a suspicion that the statement is in fact fraud .

”It seems quite clear to me that the Assembly took a decision on the lawyers and judicial proceedings against public opinion,’’said Cardinale.

The insurance supervisory authorities believe that fraud as much as 20 percent of motorists to insurance bills.

Insurance Company officials held a press conference at State House today that plans to begin airing radio advertising on alert consumers on legislative changes.

”Provisions, the actual cost savings are weakened or abandoned in favour of other provisions that look like reform - but the driver will not be registered a red cent,’’said David Snyder, Assistant General Counsel for the American Association insurance, the company represents 25 percent of New Jersey’s auto insurance policies. ”In essence, the current legislation, public policy package gift, without presenting the Interior.

Insurance companies say they are now forced most of the suspects, costs of medical care under the current system, whereby the debt issue be addressed to a group of lawyers. Advocates of the rule more often than to pay claims. The companies say that lawyers Panel often have a conflict of interest because they act as lawyers for other victims.