Palisades Group Forms Twin Lights Insurance Company
- To Serve as Group's Residual Market Company -
February 1, 2006 - Today the Palisades Group announced the formation of a new subsidiary insurance company, Twin Lights Insurance Company, to serve as the group’s residual market company. Twin Lights is expected to begin receiving assignments from the New Jersey Personal Automobile Insurance Plan (NJ-PAIP) immediately.
Under New Jersey law, all automobile insurance companies are assigned their proportionate share of the state's residual market policies. Typically, insurers either elect to enter into Limited Assignment Distribution (LAD) contracts with specialty insurers or service the assigned business directly. In the past, the Palisades Group utilized the LAD option and worked with specialty insurers who serviced the Palisades Group's share of the residual market assignments in exchange for a fee.
"With the formation of Twin Lights, the Palisades Group will now be in a position to receive its residual market assignments directly from the NJ-PAIP and provide all policy and claims services for these policyholders. We’ll no longer incur the added cost of a LAD fee," stated Gerry Wilson, President of Palisades. "This is a more cost effective solution for us," Wilson continued.
Twin Lights was formed as a subsidiary of High Point Preferred Insurance Company, which is itself a subsidiary of Palisades Safety and Insurance Association. The Palisades Group is comprised of the Palisades Insurance Companies and the High Point Insurance Companies. Twin Lights will receive NJ-PAIP assignments on behalf of both the Palisades and High Point companies.
"Through a new servicing agreement, we will be able to tap into Pilgrim Insurance Company's expertise in managing residual market business," said James Tignanelli, President of High Point.
Pilgrim Insurance Company, part of the Plymouth Rock Group headquartered in Massachusetts, specializes in servicing residual market business. Pilgrim will be providing management services for Twin Lights on behalf of the Palisades Group. "This will enable Twin Lights to operate efficiently and will allow for a special focus on the business," continued Tignanelli.
"We are delighted to be expanding our services to support Twin Lights and other insurance companies doing business in New Jersey and surrounding states," said Ellen Wilcox, President of Pilgrim.
High Point (www.highpointins.com), a New Jersey-based auto insurer, is committed to providing extraordinary customer service to New Jersey drivers. Insurance underwritten by High Point Preferred Insurance Company, High Point Safety and Insurance Company, and High Point Property and Casualty Insurance Company.