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By Eric N. Berg
See the article in its original context from
September 17, 1991
,
Section A, Page
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The Allstate Insurance Company, the largest insurer in New Jersey, said yesterday that it would seek regulatory approval to stop writing virtually all types of coverage in the state.
Blaming years of losses from its core auto-insurance operation, Allstate said its withdrawal would affect insurance covering more than 400,000 New Jersey cars, about 250,000 residences, a number of small and mid-sized businesses and tens of thousands of boats, mobile homes and recreational vehicles. It would also mean a loss of 1,400 jobs in the state.
Allstate's announcement, which stunned insurance professionals, was immediately seen as a challenge to Gov. Jim Florio, whose populist message calling for lower insurance premiums and reform of New Jersey's insurance laws helped him win the State House. Deal Seems Unlikely
The possibility remained that the company and the Governor might reach a political solution, with Allstate receiving some rate increase in return for agreeing to remain in New Jersey, but Mr. Florio's tone yesterday did not make it appear likely.
"We could have kept Allstate in New Jersey by agreeing to the 28 percent rate increase they wanted to charge our drivers," he said. "That wouldn't be fair, and we won't be blackmailed into agreeing."
After Allstate's lawyers delivered nearly 500 pounds of documents to the state insurance department outlining the company's withdrawal plans, the Governor said in a statement: "When I was growing up in Brooklyn, there was always one guy who would say that if you didn't play by his rules he would take his bat and ball and go home. If that's what an insurance company wants to do, we won't back down from out commitment to fairness for drivers and reasonable rates."
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