New Jersey Insurance

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.