"The new law provides greater flexibility to insurers while preserving the very important regulatory oversight and limitations necessary to protect policyholders," Gerry Wilson, chairman of Palisades Insurance and High Point Auto Insurance, said in a statement.
“New Jersey’s investment law was adopted over 20 years ago and was one of the most restrictive in the country," Richard Stokes, regional manager and counsel for the Property Casualty Insurers Association of America, said in a statement. "By modernizing the law, New Jersey is now in the mainstream regarding the rules on insurers’ investments.”
The bill cleared both houses of the state legislature in December 2007. Gov. Jon Corzine signed it into law earlier this month.
In 2006, the top writers of homeowners multiperil in New Jersey, according to A.M. Best Co. state/line product information based on direct premiums written, were: Allstate Insurance Group, with a 13.3% market share; State Farm Group, with 12.7%; Chubb Group of Insurance Companies, with 9%; Palisades Group, with 6.8%; and NJM Insurance Group, with 6.7%.
In 2006, the top writers of private-passenger automobile in New Jersey, according to the A.M. Best Co. state/line report based on direct premiums written, were: Allstate Insurance Group, with a 15.1% market share; NJM Insurance Group, with 13.4%; Berkshire Hathaway Insurance Group, with 12.7%; Palisades Group, with 8.9%; and State Farm Group, with 8.8%.
Palisades and High Point, both Plymouth Rock-managed companies, each currently have a Best's Financial Strength Rating of B++ (Good).