New York Insurance

Even that many motorists saw their insurance premiums filing in the wake of Dir Jim Florio’s radical transformation of the state laws automobile insurance, the insurance industry and experts say that legislators Governor’s plan is already following in the footsteps of former unsuccessful attempts for the rescue of State maroden automobile insurance.

Last year, for example, three independent studies have predicted that the market Transition Facility, the successor to debt-ridden Joint Underwriting Association, is a drift which has several of its own dollar deficit.

While the Department of Insurance officials insist that they are not with a deficit, industry experts say that the studies are correct and that consumers could ultimately cost, if companies are increased to compensate for losses arising pay the deficit.

At the same time, some experts are asking the Governor’s plan nothing more than a Band-Aid “is necessarily a setback for mending the system. Others say that radical, politically unpopular measures may be an insurance system , Fairness to consumers and profitable for insurance companies.

Still others say that, despite the fact that premiums are falling, regulations, by monitoring National Insurance unfair to punish the Commissioner, many motorists by insurance companies exorbitant fees for premium against those who require the minor traffic offences.

The new discussion comes on the heels last Tuesday the refusal of Governor Florio’s apparent political and controversial, as Allstate Insurance Company, provides almost half a million vehicles produced with their plans in writing to cease to draw their policies and activities from State budget for good.

“We felt that all of the JUA legally put to death unlikely problems or conditions they leave,” says Ronald Krauss, Vice President in the field of communication for the American Insurance Association, a New - York to the trade organization of insurance companies.

Mr. Krauss said that, despite repeated attempts by insurance processing legislators and governors from both political parties, the insurance system in New Jersey was slightly better today than 20 years ago.

“The good intentions of politicians efforts to maintain tariffs on auto insurance fails to liquidation,” said Krauss. “You can not legislate economic reality.”

The economic reality that the insurance industry is now, he says, is the deficit in the hall market Transition Facility.

Sub-Governor Florio’s Fair Automobile Insurance Reform Act of debt-ridden Joint Underwriting Association was disbanded and the estimated total cost of two million motorists, was provided from which they were transferred to the Market Transition Facility. Prix at the same level

Prices for insured drivers in the field of market research Transition Facility, approximately the same level as those charged by the Joint Committee Underwriting Association, despite the fact that the association had a unit rate of $ 3.4 billion deficit.

Unlike the association, but the market is the transition facility for the most part “to destroy themselves” as drivers are relocated in volunteers. Only 10 percent of the worst driver of the pool by the end of September 1993, and then it is in a “pool of risk attributed to the” assurance of a related business pool which the pilot is not insurable, it would be comparable with the “risk map” is preceded by the municipality Underwriting Association.

When the law has been decided, said the official Market Transition Facility, even to maintain. The hope seems, however, been excessively optimistic.

In November 1990, two independent studies of the Market Transition Facility has been - by the division of insurance and other by the market itself Transition Facility. Both studies have shown that the transition facility to run on a considerable loss.

Robert Aldorisio, consulting actuary for Milliman & Robertson of New York, the company, the insurance division, said his company had calculated that for the market Transition Facility break-even, prices should be increased 62, 1 percent. With no increase, “said Aldorisio recently, the market might have expected Transition Facility, argues that if a deficit of over $ 1 billion.