You have the right to a timely response:
You have the right to a timely response when seeking an appointment or application from an
agent, broker or company. Appointments should be scheduled so that you can obtain coverage
before your current policy expires. However, an application is usually not considered complete
until the company has obtained all pertinent information, including a copy of the applicant’s
driving record from the Motor Vehicle Commission and verification of any previous coverage.
Therefore, the overall application process can take up to two weeks. Make sure you give
yourself enough time to shop for coverage.
You have the right to the prompt and fair handling of claims:
You have the right to ask about any payments made to others by your company and charged
to your policy. If you file a claim, it should be handled promptly and fairly. If a claim is denied,
you must receive a written explanation for the denial.
You have the right to a notice of cancellation:
There are specific circumstances that allow an insurance company to cancel your policy during
the policy period. This is referred to as a “mid-term cancellation.” This may only occur when
fraud is discovered, when your driver’s license is suspended or when the policyholder fails to
make premium payments. A 15-day warning notice must be sent before the policy is canceled.
You have the right to appeal:
If your coverage is canceled, you can file an appeal with the New Jersey Department of
Banking and Insurance. Contact the Consumer Inquiry and Response Center, P.O. Box 471,
Trenton, NJ 08625-0471, call (609) 292-7272 or 1-800-446-7467, or visit online at
www.state.nj.us/dobi/consumer.htm. The Department cannot guarantee that your policy will be
reinstated, so you should not delay shopping for alternate coverage.
If a carrier denies you coverage and does not state a reason, or if you believe you have been
treated unfairly, you can contact the Department.
You have the right to a notice of non-renewal:
Insurers can decline to renew coverage if you no longer meet any of the company’s
acceptance criteria*. This can occur when a driver’s record includes “at-fault accident” or motor
vehicle violations. Other reasons for nonrenewal of a policy include:
• The Department has, for regulatory reasons, permitted the company to non-renew
policies.
• The insurer is using the 2-for-1 or the 2 percent rule. The 2-for-1 rule allows the insurer
to non-renew one vehicle for every two new ones it writes in each territory. The 2
percent rule allows the insurer to non-renew up to 2 percent of policies in a territory