"I have asked representatives who are closest to this issue to come to the table with ideas that, if implemented, would bring new insurance companies to New Jersey and improve the auto insurance system for citizens," Ms. Bakke said in a statement.

The department said 30 professionals would form the working group, which would be divided into three round tables. One team would examine what improvements need to be made to the existing auto insurance system; a second team would investigate ways of promoting a competitive marketplace; and a third group would explore ideas for more fundamental changes.

The group, which met for the first time yesterday, is not expected to produce a report, said William Heine, the department's spokesman. Its purpose is to "exchange ideas" that would help improve or possibly change the system in New Jersey, he said.

The department said it would continue to meet with other interested parties during this process, and is open to all ideas for improving auto insurance in the state.

"From an industry prospective it is certainly constructive," said John K. Tiene chief administrative officer and vice president, public relations with the Insurance Council of New Jersey in Ewing, N.J. "We are supportive of this type of communication on an issue that is critical to the state."

Mr. Tiene said he is involved in the group.

Richard M. Stokes, assistant regional manager and legislative counsel for the Alliance of American Insurers headquartered in Downers Grove, Ill., said Alliance members, Prudential, New Jersey Manufacturers and Liberty Mutual, would be part of the task force.

He called the effort a "good idea" and "an excellent opportunity" for the commissioner to work with and review auto insurance reform issues with the industry.

New Jersey's auto insurance program has been hit by numerous requests by insurers to increase rates. Several leading companies said they would leave the state because it is becoming unprofitable.

State Farm, which is the largest writer of auto insurance in New Jersey, plans to stop writing coverage and has applied to leave the New Jersey auto market. Other insurers who have threatened to leave the state said they would wait and see if the climate improves after receiving increases this year.

Chris Neal, assistant public affairs manager for State Farm located in Wayne, N.J., said the group's work would have no bearing on State Farm Indemnity's decision to leave the state. The subsidiary only writes auto insurance in New Jersey. He said the company had not issued an official opinion on the working group.

The department has declared State Farm's application complete, Mr. Neal said, but no date has been set for leaving the state. The state should respond by July 1, unless it asks for an extension to examine the plan, he said.

Other personal and commercial lines written in New Jersey by State Farm Fire and Casualty, Co., should be unaffected by the withdrawal, Mr. Neal noted. The company is the number one writer of homeowners policies in New Jersey and a "major" underwriter for commercial policies, Mr. Neal said.