The New Jersey State Legislature has voted to eliminate the requirement that agents provide customers with multiple quotes for their private passenger automobile insurance.
The bill, A3863, was passed by the state Senate yesterday and sent to Gov. Jon Corzine for his signature. The state Assembly passed the bill in June on a unanimous vote. The Senate vote was 33-3.
As part of the state's 2003 auto reform package, agents were required to provide three quotes to customers demonstrating different coverage scenarios. Agents were also required to produce quotes for every company they represented in their agency.
According to legislative summary with the bill, both Assembly and Senate committees reported that experience showed the law offered consumers little benefit because the quotes did not deal with the individual's circumstances.
Some carriers quoted may be inappropriate for the client because that company could be in financial difficulty, or premium was higher for the same coverage, or a customer might want coverage from a particular company. The Legislature also noted that in some cases an agent may represent only one company or the customer deals direct with the carrier.
Both the Professional Insurance Agents of New Jersey and the Independent Insurance Agents and Brokers of New Jersey voiced strong support for the bill and urged the governor to sign it.
"Insurance agents are professionals who strive to offer the best products at the best prices to their customers," said Jack Lynn, president of the PIANJ. "They do not need to be told how to best serve the interests of their customers."
"Our members are looking forward to spending more time working with clients to address their specific needs," said Jeanne M Heisler, government affairs representative for IIABNJ. "The existing statutes, designed when New Jersey was still undergoing a difficult insurance market, are no longer relevant or necessary in the current automobile marketplace."
A spokeswoman for the IIABNJ said the governor is expected to sign the bill.
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