NJM Insurance Group - Home Insurance Buyers Guide - Differences between NJM and NJRe

The following is a list of differences between the New Jersey Manufacturers Insurance Company (NJM) and the New Jersey Re-Insurance Company (NJRe).

NJRe rates are higher than those charged by NJM.
NJRe requires a minimum deposit before coverage can take effect.
The HO-61 Scheduled Personal Property Coverage is not available through NJRe.
NJM normally pays a dividend on the policy premium at expiration. Currently NJRe policyholders do not receive dividends.
NJM provides homeowners coverage in both Pennsylvania and New Jersey, but NJRe homeowners coverage is available only in New Jersey.

The dividend is a special benefit of New Jersey Manufacturers Insurance Company, which has provided those we have voluntarily insured with substantial savings each year. We strive to maintain the high underwriting standards and operational efficiencies that will continue to permit the Directors of the Company to declare dividends in the future.

The following is an excerpt from Section 5-1 of the Bylaws of the Company: “After setting aside the necessary reserves and providing for adequate surplus, the Board of Directors may from time to time, in its discretion, order distribution to policyholders of dividends based upon net premiums received and to be received on policies written in a specified period of time. The Company shall not become obligated to pay a dividend to a policyholder in respect of his policy until after its termination, the completion of any payroll audit necessary to determine the amount of premium for it, and the receipt of all balance of premium due in respect of it.”

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	DIFFERENCES BETWEEN NJM AND NJRe The following is a list of differences between the New Jersey Manufacturers Insurance Company (NJM) and the New Jersey Re-Insurance Company (NJRe). NJRe rates are higher than those charged by NJM. NJRe requires a minimum deposit before coverage can take effect. The HO-61 Scheduled Personal Property Coverage is not available through NJRe. NJM normally pays a dividend on the policy premium at expiration. Currently NJRe policyholders do not receive dividends. NJM provides homeowners coverage in both Pennsylvania and New Jersey, but NJRe homeowners coverage is available only in New Jersey. The dividend is a special benefit of New Jersey Manufacturers Insurance Company, which has provided those we have voluntarily insured with substantial savings each year. We strive to maintain the high underwriting standards and operational efficiencies that will continue to permit the Directors of the Company to declare dividends in the future. The following is an excerpt from Section 5-1 of the Bylaws of the Company: “After setting aside the necessary reserves and providing for adequate surplus, the Board of Directors may from time to time, in its discretion, order distribution to policyholders of dividends based upon net premiums received and to be received on policies written in a specified period of time. The Company shall not become obligated to pay a dividend to a policyholder in respect of his policy until after its termination, the completion of any payroll audit necessary to determine the amount of premium for it, and the receipt of all balance of premium due in respect of it.”
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