New Jersey's Department of Banking and Insurance was operating with a skeleton crew today handling only medical insurance emergencies as most of the state's government continued in a shutdown mode.

Gov. Jon Corzine ordered the closing Saturday in a stalemate with the legislature over passage of a budget that would let the state pay its bills.

A harried staff member at the department said that the agency was only dealing with questions concerning denial of insurance coverage for emergency medical procedures and doing no other business.

After the governor's order was issued, the department sent out a notice to regulated parties, letting them know that under its provisions any deadlines for department action concerning any filings would be extended.

The executive order states in part that during the budget crisis agency heads are permitted to "waive, suspend, or modify any existing rule, the enforcement of which would be detrimental to the public health, safety, or welfare during this emergency..."

Among other insurance related functions impacted by the governor's order were the state's workers' compensation courts, which were shut down

The closing of state government activities, which today included state regulated parks and casinos in Atlantic City, is mandated, because under the state constitution, New Jersey cannot expend treasury monies without an appropriations act. Approximately 45,000 state employees at 31 departments, agencies and authorities have been furloughed during the shutdown.

Gov. Corzine has asked for a one percent increase in the state sales tax, which his fellow Democrat, Assembly Speaker Joseph J. Roberts Jr., has said the Assembly is unwilling to pass.

Special Reports /

N.J. Insurance Dept. Maintains Skeleton Operation

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