N.J. Ruling Impact Limited

The controversy over the termination of an agents contract by an auto insurer in New Jersey will not have broad national implications, both company and agent association representatives feel.

The agency termination case of R.J. Gaydos Insurance Agency in Clifton, N.J. against the now defunct National Consumer Insurance Company will remain a uniquely New Jersey affair without broad implications elsewhere. “This is pretty state-specific,” observed Jill Muratori, attorney for the Professional Insurance Agents of New Jersey in Trenton, which financed the appeal. Attorneys in other states could use the decision as a basis for agents filing a cause under breach of good faith, but the legal test would have to be similar to New Jerseys, she said.

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