The issue before Commissioner Bakke was whether Allstate New Jersey had violated the state's Fair Automobile Insurance Act.

In their complaint, agents charged, among other things, that Allstate linked bonuses to loss ratios, which sometimes hurt agents with urban policies. The agents also said Allstate marketing strategies targeted certain suburban areas and not urban ones, which, they argued, violates the Fair Automobile Insurance Act.

Commissioner Bakke disagreed with agents' claim, stating instead that the "take-all-comers" provision does not prevent companies from developing a statewide business plan.

"We know from our ample experience that a failure to balance urban auto risks with suburban risks results in carriers being unable to write any auto policies at all," said Mary Caffrey, spokesperson for the New Jersey Department of Banking and Insurance.

Besides, New Jersey has what it calls the "Urban Enterprise Zone" assignment system, an urban quota that auto insurers must meet, and Allstate New Jersey has been meeting its goal, she said.

"Every carrier in New Jersey has the quota in urban assignments. Let's say you have five percent of the market in New Jersey, then you also have to have five percent in the urban market as well," said Ms. Caffrey.

She pointed out that Allstate New Jersey has been meeting its urban assignment and that its share in the urban market is, in fact, increasing.

"Allstate New Jersey actually was doing a pretty good job," she said.