TRENTON, N.J., January 10 – They threw GEICOs gecko off the George Washington Bridge the other day.

The Port Authority of New York and New Jersey did it by scrapping plans for a $3.2 million ad campaign by GEICO on billboards and toll booths of the George Washington Bridge.

The contract was cancelled after two top legislators in the New Jersey Senate, President Richard Codey and Assemblyman Neil Cohen, said it was improper for a state agency to promote an industry that is regulated by the state.

Codey said the contract for the ads should have been made public and put out for public bid. He questioned whether $3.4 million was enough for such a visible campaign.

Cohen who has tangled with GEICO before on advertising with state government entities said, Regulated companies like GEICO should not be given a competitive advantage over competitors through government agencies.

The ads were to include drawings of the mascot gecko on toll booths as well as placing billboards above the bridges toll booths on the upper and lower levels declaring, GEICO " Drive safely.

Further GEICO literature was to be mailed with Port Authority E-Z Pass statements to customers each of the next two years.

PIANJ applauded the authority for its decision to cancel the contract.

Andrew Anderson, president of PIANJ said, The association believes that no state regulated authority should allow advertisements that may be misunderstood as supported by the state government. The implied endorsement of the state should not be for sale to the highest bidder.

Last May, PIANJ called for an investigation into a similar practice by GEICO with the New Jersey Turnpike Authority that sent E-Z pass account holders statements accompanied by a GEICO ad. The practice was halted in October 2006 after Cohen proposed legislation to ban insurance companies from advertising in state publications.