TRENTON, N.J., May 12 – The state wants to get rid of a four-year-old insurance requirement, called the Insurance Report Card system, because it helped neither the companies nor the policyholders.

The requirement was part of the Automobile Insurance Report Card program launched in 2003 to give consumers relevant and appropriate information.

The unloading of the requirement is outlined in A3863, sponsored by Assemblyman Neil Cohen (D-Union), who admits in the official statement, This requirement offers very little benefit to consumers.

The bill was released by the Assembly Insurance Committee for a future floor vote by the Assembly, and it applies to companies with more than 50,000 car insurance policies.

Cohen said the requirement forced insurance agents to provide each eligible person seeking insurance with premium quotations for the forms or type of automobile insurance coverages offered by all insurers represented by the agent or agents placing risks.

According to bill, statement, This requirement 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 options to consumers.

The statement goes on, Experience has shown that it is inappropriate or impractical for an agent to provide quotations from all companies that the agent represents.

Additionally, according to the statement, This requirement does not benefit all consumers since those who purchase automobile insurance through a direct writer company or a captive agent company are only provided with one quote for that sole company.