New Jersey saw an increase in the number of new insurance companies doing business in the state, and in carriers writing new lines, in 2010, according to state officials.
The state insurance department said that last year it admitted 27 new insurers and extended new business lines to 28 carriers. That number is up nearly eight percent from 2009 when the department approved 51 new admissions and business extensions, and up 25 percent from 2008 when the department approved 44, according to officials.
Department of Banking and Insurance (DOBI) Commissioner Tom Considine said that included in the 2010 admissions were 10 new commercial insurance carriers, six new workers’ compensation carriers and three new homeowners and auto insurance companies. Extensions were granted in the commercial lines, homeowners and workers’ compensation markets.
In addition, DOBI regulators reported that in 2010 they recovered more than $11.3 million from insurance companies for consumers and returned nearly $9.4 million to medical providers, including doctors and hospitals. Consumers and providers received the payments for claims processing delays, improper handling, and denials of claims, and premium refunds due to improper ratings or failures to return unearned premiums. Insurers made the payments resulting from probes into consumer complaints against licensees, enforcement investigations and errors found during market conduct examinations.