New Jersey Department of Insurance
National Association of Insurance Commisioner’s
Life Insurance Rates News Release: 1/17/2005
Category: Life Insurance Rate Enforcement
Washington, DC – A federal judge today ruled in favor of the
National Association of Insurance Commisioners and its efforts to recoup more than $100 million for life insurance consumers nation wide, an amount which the agency contends that a select few insurance companies may have overcharged life insurance consumers by inflating
New Jersey life insurance prices and
New Jersey life insurance
quotes.
The federal judicial panel and courts actions allows the NAIC to help reduce
New Jersey life insurance
rates. The objective of NAIC staff throughout this action has been to provide life insurance rate relief for life insurance consumer policyholders who have been charged excessive life insurance rates.
NAIC staff, using authority granted by the federal judicial panel’s decision, ordered life insurance companies to reduce its life owners rates by 12 percent in September 2004.
New Jersey life insurance companies appealed the reduction in district court, claiming that the they had been denied due process in ordering the rate reduction.
“NAIC staff’s latest action, based on a different law was designed to address the court’s concerns regarding due process,” said NAIC’s Deputy Commissioner for Policy. “Despite the insurance companies objections, the courts have allowed the debate based on the facts to move forward. In the end we believe the facts will show that their rates can be reduced.”
NAIC staff contends that life insurance companies have been overcharging its policyholders since June 11, 2003, the effective date of Senate Bill 14. NAIC is seeking a refund of the excessive premium plus 10 percent interest. The total amount will be calculated from June 11, 2003, to present.
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New Jersey Facts: New Jersey became a united crown colony in 1702, administered by the royal governor of New York. Finally, in 1738, New Jersey was separated from New York under its own royal governor, Lewis Morris. Because of its key location between New York City and Philadelphia, New Jersey saw much fighting during the American Revolution. Today, New Jersey, an area of wide industrial diversification, is known as the Crossroads of the East. Products from over 15,000 factories can be delivered overnight to almost 60 million people, representing 12 states and the District of Columbia. The greatest single industry is chemicals; New Jersey is one of the foremost research centers in the world. Many large oil refineries are located in northern New Jersey.
Other important manufactured items are pharmaceuticals, instruments, machinery, electrical goods, and apparel. Productive farmland covers nearly one million acres, about 20% of New Jersey's land area. The state ranks high in the production of almost all garden vegetables, as well as cranberries, blueberries, and peaches. Poultry, dairy products, and seafood are also top commodities. Tourism is the second-largest industry in New Jersey. The state has numerous resort areas on 127 mi of Atlantic coastline. In 1977, New Jersey voters approved legislation allowing legalized casino gambling in Atlantic City. Points of interest include the Delaware Water Gap, the Edison National Historic Site in West Orange, Princeton University, Liberty State Park, Jersey City, and the N.J. State Aquarium in Camden. Garden State From the Channel Isle of Jersey
The ten largest cities in New Jersey are: Newark, Jersey City, Paterson, Elizabeth, Edison, Woodbridge, Dover, Hamilton, Trenton, and Camden.
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