NEW JERSEY AGENTS TO RECOVER ‘OUT OF POCKET’ COSTS:

New Jersey’s Department of Banking and Insurance has accepted a proposal put forth by the Professional Insurance Agents of New Jersey to allow agents to recoup certain out-of-pocket expenses. Agents will be able to recover their costs incurred in obtaining documents and other materials needed for underwriting new auto applications, such as motor vehicle and CLUE reports. The PIANJ made a strong push for the change when the cost of motor vehicle reports increased dramatically from $4 to $10 in the summer of 2002. Its representatives, including PIANJ President John D’Agostino Jr., past Presidents David J. Madara and Paul Monacelli, and Legislative Representative Leon Zimmerman, met with department officials on several occasions to request that agents be allowed to recover the costs of obtaining motor vehicle reports. The proposal would allow all producers, including those acting as agents for an insurance company, to charge for reimbursement of actual out-of-pocket expenses incurred obtaining documents and other materials related to the underwriting process for new automobile applications, subject to certain limitations. Producers would be limited to $20 per policy, however, even if the actual costs exceed this limit, and must also retain verifiable proof of the costs incurred, and provide copies of all documents or materials obtained to the applicant, regardless of whether the costs incurred exceed the $20 limit.

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