The department said producers must retain proof of the costs incurred and provide copies of documents to the applicant. Producers must also obtain a signed, written fee agreement prior to charging fees.

The new rules allow agents to charge fees up to $20 per policy to recover the costs incurred in obtaining documents needed to underwrite a new auto policy. Under the former rules, only producers acting as brokers or consultants could charge fees to policyholders or applicants for obtaining documents like motor vehicle registrations, while producers acting as agents were excluded from charging from the same services.

Agent sought the fee increase following a 2002 boost in registration costs from $4 to $10.

John D'Agostino Jr., the immediate past president of the Professional Insurance Agents of New Jersey Inc., in a letter last year urging the rule change, told the department, "The substantial cost increase to obtain MVRs has placed the business health of many agencies in serious trouble."

Bill Heine, spokesperson for the DOBI, commented on the new benefits for insurance agencies as well as consumers. Agents typically obtain motor vehicle records to determine rate and eligibility for an applicant's insurance coverage and applicants can take the reports with them to shop around for insurance. For agencies, he said, "[The new rule] is useful in that it allows agents to recoup the cost incurred with MVRs and allows brokers and agents to be reimbursed."