Allstate New Jersey wins judgment from state Superior Court in franchise suit

Allstate InsuranceAllstate New Jersey Insurance Company had received a judgment in its favor from the Superior Court in that state, dismissing all of the claims made against the insurer in a lawsuit that had been filed against it.

In 2011, the suit was filed by three exclusive agents who sought to prevent the agreements with their agencies from being terminated for being unable to meet certain quotas. Their claim was that their relationship with Allstate New Jersey was of a franchise nature and that they therefore had the protection of the New Jersey Franchise Practices Act. However, the efforts made by those agents to cease their termination were denied by the court.

The court’s decision was made because they decided that there was no franchise relationship between the agents and the insurer and therefore they were not entitled to the protection provided by the Act. The court also pointed out in its decision that “insurance industry has never been found by any court in New Jersey, or elsewhere, to be home to an insurance company franchisor, or agent franchisee.”

Allstate’s position was that exclusive agents do not fall into the category of being franchisees, but are instead considered to be independent contractor agents. The court supported that statement maintained by the insurer.

Allstate New Jersey Insurance Company is owned by the Allstate Corporation, which is the largest personal lines insurer that is publicly held in the United States. It has been an insurer for 80 years and is known for its innovation and continual reinvention of retirement and protection plans.

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