He added that the company's move is "a clear indication that consumers continue to benefit from increased competition, and demonstrates that we continue to make progress toward our goal of a stable, sustainable automobile insurance market."

Founded in 1958, 21st Century is a direct writer utilizing an 800-number or online application. The company has both English and Spanish language sites.

Bruce W. Marlow, 21st Century's chief executive officer, during a conference call yesterday said the company's entry into New Jersey was a direct result of the state's reforms.

"We are not plunging into New Jersey," he said, but decided to move into the state because it has become a competitive market where a direct writer can thrive, and "we do it with great enthusiasm."

He said the company does not use education or occupation criteria in its underwriting, but does use credit reporting.

The use of education levels and occupation types in evaluating drivers as risks became a controversial topic in the state when it was revealed that GEICO uses it in its underwriting.

Mr. Marlow added that no matter what the company uses in its underwriting, it is up to the consumer to pursue different carriers and find the right price that fits them for their coverage.

The company said that in addition to New Jersey, and its home base, California, it also sells insurance in Arizona, Florida, Georgia, Illinois, Indiana, Nevada, Ohio, Oregon, Pennsylvania, Texas and Washington. It said it has plans for further expansion in the future.

According to National Underwriter's Highline Data Service, 21st Century is "A" rated by both Standard & Poor's and Fitch. It is a member of the New York-based American International Group of companies.