Issue:  2007-05-23

Top Insurers Fail to Meet UEZ Quotas

♦ New Jersey

TRENTON, N.J., May 23 – The five top writers of car insurance are among the companies that have fallen short of writing coverage in the states 28 urban enterprise zones, and have been ordered to meet their quotas by year end.

The order was issued by Insurance Commissioner Steven Goldman as part of the annual requirement that all companies write their share of urban risks as required by the 1998 law. The companies must write at least 95 percent of their zone share by September to escape the sanction of getting assigned exposures in the assigned risk plan.

The listing of the companies also shows that Allstate has regained the top spot in writing car insurance in New Jersey, replacing New Jersey Manufacturers.

According to the latest official listings by the department, Allstate/Encompass group had 792,495 polices in force, while New Jersey Manufacturers had 729,030 in the voluntary market at the end of last year.

In third place is GEICO with 606,186 voluntary policies in force as of December 2005, a rapid growth for the company since it re-entered the New Jersey market four years ago.

In fourth place is State Farm with 507,336 policies, and in fifth, Liberty Group with 382,516.

These five companies write almost 60 percent of the 5.1 million car insurance policies in the voluntary market.

The five top companies, the number of zone writings now, and the quota number as reported by the Insurance Department are:

Allstate, 73,039 zone policies written, short of the quota of 91,148 cars;

New Jersey Manufacturers, 65,690 zone policies written, short of the quota of 84,039 cars;

GEICO, 62,542 zone policies written, short of the quota of 68,874 cars;

State Farm, 46,991 zone policies written, short of the quota of 58,321 cars;

Liberty Mutual Group, 45,130 zone policies written, short of the quota of 42,743 cars.

Other companies not meeting their quotas are High Point Group, National General, New Jersey Skylands, Palisades Group, and USAA.

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