New Jersey Insurance

Officials of the State said ITT Hartford Insurance Group, said today that if one of its subsidiaries to halt wants its automobile insurance in New Jersey, the giant insurer is required by or a seat in that state.

Officials of the State said ITT Hartford Insurance Group, said today that if one of its subsidiaries to halt wants its automobile insurance in New Jersey, the giant insurer is required by or a seat in that state.

The action was the first of 32 against an insurer, an application filing their automobile coverage in New Jersey, because the legislation passed this year to keep premiums and eliminate a deficit of $ 3 billion in the town Underwriting Association , Pool public insurance for drivers at high risk.

In the case of an order by fax this afternoon, Dir Jim Florio informed the subsidiary, Twin City Fire & Casualty Company, that when his car abandoned 23000 policy in New Jersey, its parent company, ITT Hartford, must also be in possession of abandonment licensing nine other subsidiaries to sell the house owner, health and life insurance.

“Can not have both ways”

”If they do not respect the rules of the game, if it is not just playing with our drivers, they can not have both possibilities,”M. Florio said today. ”If they do not sell auto insurance, we will not allow them to sell us something.”

ITT Hartford collects about $ 17 million in premiums, about 1 percent of all traffic on private automobile insurance in the state, by the Twin City subsidiary. But there is a lot more companies in other lines such as life insurance and accident insurance and health and life.

Although public servants have no fixed amount for the whole volume of business done Hartford all subsidiaries in New Jersey and the company to offer volumes of dollars, it is estimated that the amount of three läuft”in million.”

The mandate of Hartford to renounce all its certificates of authority or license, sell any form of insurance was adopted after a lengthy statement by Samuel F. Fortunato, insurance commissioner. Details of what the company must take if it withdraws from New Jersey’s insurance market car.

In addition to abandoning all its licenses, the company is still on the market for a period of five years of auto insurance for their clients and they must try to cover replacement for customers refuses again to all, the order said.

The Commissioner is also necessary for the company for a loan of $ 13.8 million to pay future debts of the company may, in the state.

No specific directives

Ken Ferraro, a spokesman for the company, said Hartford has only been mandated to discuss und”wir yet.”

It was not known, which would then Hartford, but a court in New Jersey has already said that the company must exhaust all administrative law to complain.

The strict guidelines for the withdrawal of the turbulent New Jersey market for auto insurance has been issued under the authority of the Fair Auto Insurance Reform Act in February, with retroactive effect from 1st January.

The law gives the insurance commissioner broad leeway in defining the circumstances under which an insurer may be composed of New Jersey.

Since the adoption of the law and the scrapping of the Joint Underwriting Association, 32 companies have a petition to stop selling auto insurance in New Jersey.

Although the State, the association has been exploited to ensure the driver is unable, for insurance on the commercial market, it has increased by more than half of drivers in the state.

This is mainly because insurance companies, the policy has written for the program, the driver decided it would be collected and a tax of 8 percent, said officials of State. The state was responsible for the system and claims against it.

If the system has been set this year, it was estimated that the debt of $ 3 billion, and the governor of the Insurance Act on the reform not only to resume corporate liability insurance for drivers at high risk, but the work they pay a large part of the debt.