Trenton, N.J.– A bill that will eliminate the requirements for auto insurance agents to provide quotes for all their companies and to provide three insurance scenarios to applicants has passed the New Jersey Legislature.
Industry associations lobbied for the bill, arguing that the requirements the bill eliminates no longer are appropriate in the current automobile insurance market. “The requirement for agents to provide quotes for all their represented companies places an unnecessary obligation on insurance agents and does not serve consumers because it fails to take into account all factors that agents consider when offering coverage options to consumers,” says Jack Lynn, president, Professional Insurance Agents New Jersey (PIANJ).
Lynn explained that not every company an agent represents offers appropriate coverage options for a specific customer. For example, an agent should not be required to provide a quote for a company that is facing financial problems, or for a company that offers the same coverage as another, but at a higher premium. Nor is it appropriate to provide quotes for all other companies when a consumer asks to purchase insurance from a specific insurance company, Lynn adds.
“Experience has shown that this requirement offers very little benefit to consumers, who disregard these hypothetical coverage scenarios that are often not based on the individual’s circumstances,” Lynn says. “Insurance professionals advise their customers about the different coverage options available to them as part of what they do everyday.”
The bill now heads to Gov. Jon Corzine for his signature.
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