Mary E. Christiano, a representative for PIANJ, said the pact with NJSIA--a not-for-profit, policyholder-owned reciprocal insurance pool--"is unusual with a reciprocal insurer." Reciprocal exchanges have an attorney-in-fact administering the operation, which has each insured insuring the other insureds, with profits and losses proportionate to a member's coverage amount.

None of the other reciprocals in the state has met with PIANJ to set contract language as the NJSIA did, she said. The company, an auto insurer, approached the agent group and held discussions to work out language acceptable to PIANJ, which preserves, by express recognition, a variety of agents' rights in relation to NJSIA.

PIANJ said key contract language upholds agents' property rights to their records of business. NJSIA has agreed it will not use agent records to solicit policyholders, Ms. Christiano said.

Other portions of the contract retain agents' rights to contact NJSIA members doing business through those agents, and recognize agents' rights to place expirations.

"We appreciate the forethought that NJSIA exhibited by offering us the opportunity to provide meaningful input regarding the provisions of the contract," said PIANJ President David Madara, of the Madara Company Inc. in Mt. Laurel, N.J.

Mr. Madara said the cooperative effort "will bring a better understanding of our relationship which now exists between our agents and the company."

Alex Archimedes, Skylands Insurance president and chief executive officer, said the company is committed to its relationship with independent agents and is "pleased to have come to an agreement with PIANJ that will benefit our organization, our agent representatives and, most importantly, our mutual clients."

PIANJ said it encourages members with questions about their contract to discuss them with the company or contact the PIA Industry Resource Center at (800) 424-4244.

The New Jersey Department of Banking and Insurance gave operating approval to the insurer at the beginning of the month.

NJSIA is the auto personal lines successor to The Camden Fire Insurance Association ("Camden Fire"), a wholly-owned subsidiary of OneBeacon Insurance Group.

NJSIA, in conjunction with its wholly-owned subsidiary, New Jersey Skylands Insurance Company, will provide auto coverage to clients of its predecessor, Camden Fire.

NJSIA is the lead company of New Jersey Skylands Insurance, recently formed by White Mountains Insurance Group, Ltd. to restructure its New Jersey personal lines operations. NJSIA and NJSIC were granted Certificates of Authority on Aug. 2.