The measure, A. 3863, will go to Gov. Jon Corzine for his signature, having unanimously cleared the state Assembly and passed the state Senate by a 33-3 margin.
The Professional Insurance Agents of New Jersey applauded the vote, saying the current requirements are not appropriate to the current automobile insurance market.
"The requirement for agents to provide quotes for all their represented companies 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 coverage options to consumers," PIA-NJ President Jack Lynn said in a statement.
Not every company an agent represents offers appropriate coverage options for all customers, Lynn said. He said an agent should not be required to provide a quote for a company that is facing financial problems, or for a company that offers the same coverage as another, but at a higher premium.
The bill also removes the requirement for insurers to provide each applicant seeking automobile insurance, and each insured upon request, with three premium scenarios demonstrating the effect of different coverage choices. This requirement for "hypothetical coverage scenarios" offers little value to consumers, who tend to disregard them anyway, Lynn said.
In 2006, the top writers of private-passenger auto in New Jersey, according to the A.M. Best Co. state/line report based on direct premiums written, were: Allstate Insurance Group, with 15.1% of market share; NJM Insurance Group, 13.4%; Berkshire Hathaway Insurance Group, 12.7%; Palisades Group, 8.9%; and State Farm Group, 8.8%.