Since the reforms, a number of companies--Mercury General, Esurance Insurance Company, Progressive and GEICO--have entered the state, invigorating competition, which PCI called the most important factor to keeping prices in check.

Companies in New Jersey are making money, PCI noted, but are showing flat profits while other states report sharp increases in profits. PCI said the flat profits of New Jersey insurers are indicative of strong competition in the state.

PCI addeed, however, that there are still three issues that need to be addressed to keep a healthy insurance market in place.

In an interview with National Underwriter, Mr. Stokes identified these areas as territorial ratings, a medical fee schedule for treatment of injuries from a car accident, and legislative action to reverse a court ruling eliminating the requirement that permanent injuries must have a serious impact on a claimant's life before seeking civil damages. Each issue will require different branches of the state's government to find a remedy.

The court's decision on the reform act's attempt to limit bodily injury suits was struck down by the State Supreme Court on the grounds that the legislation did not spell out the intent of legislators.

Justice Roberto A. Rivera-Soto said in a concurring opinion that it will be up to the legislature to fix the language.

On the issue of territorial rating, PCI said the Territorial Rating Commission has not met in 50 years and needs to update the rating structure.

A medical fee schedule can be instituted by the state's Department of Banking and Insurance. The pain and suffering threshold will require legislative action.

While PCI plans to keep working on these reforms, a timetable in New Jersey for doing so has not been set. Mr. Stokes said this situation is primarily due to the state government's transition while Gov. Jon S. Corzine assembles his governing team.

Gov. Corzine has named Steven M. Goldman to replace Acting Commissioner Donald Bryan to become head of the state's banking and insurance department. Mr. Stokes said no date for a hearing on his nomination has been set yet.

"We've made real progress in the last three years," Mr. Stokes said. "But there is still much we can do to make the New Jersey market more competitive and lower the price of auto insurance for the state's consumers."