Advocacy in action blog

NAIFA-New Jersey Grassroots Involvement Chair Jill Van Nostrand asked the New Jersey Department of Labor and Workforce Development to withdraw a proposed rule that would risk misclassifying thousands of independent contractors in the state, including insurance producers and financial advisors, as employees under state labor law. In a comment letter she submitted on behalf of NAIFA-New Jersey, Van Nostrand wrote that the proposal ignores decades of legal precedent and places unnecessary burdens on highly regulated professionals who are already held to strict compliance standards.

A rule proposed by the New Jersey Department of Labor and Workforce Development (DOLWD) threatens the independent contractor status of many insurance agents and brokers and would improperly classify them as "employees" under state labor laws. Unfortunately, this would also impact consumers in the state, as the independence of licensed insurance and financial professionals allows them to effectively serve their clients by offering products and services from multiple insurance companies and financial institutions.

NAIFA's New Jersey chapter (NAIFA-NJ) has been hard at work on the advocacy front and has recent wins to show for its efforts.

The New Jersey state Senate has passed the New Jersey Insurance Fair Conduct Act, which would permit a consumer to bring a private cause of action lawsuit against an insurer accused of an unreasonable claim denial or delay in payment of benefits.

NAIFA-NJ recently put out a call to action to its members, asking them to contact their state senators to vote "No" on S-1559. The bill, the New Jersey Insurance Fair Conduct Act, would establish a private cause of action for first-party claimants against an auto insurer for an unreasonable delay or denial of a claim or for violating statutes prohibiting unfair or deceptive acts or practices.