Collectibles Insurance Agency Affidavit

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Posted By: Kevin Cummings

I know some of you also have your collections insured through the Collectibles Insurance Agency. Along with my premium renewal notice this year I got an affidavit that I need to sign. The wording is as follows:

"The undersigned applicant has been advised by the undersigned originating insurance producer and understands that an insurance policy written by a surplus lines insurer is not subject to the filing or approval requirements of the New Jersey Department of Banking and Insurance. Such a policy may contain conditions, limitation, exclusions, and less favorable terms than a policy issued by an insurer granted a Certificate of Authority by the New Jersey Department of Banking and Insurance."

First of all, I have not been "advised" by the Collectibles Insurance Agency, unless asking me to simply read and sign the statement above constitutes that. Notified, yes; advised, no. And simply by reading and signing I understand? Maybe if they really advised me I would.

Can any of you laywers or insurance experts out there tell me, in English, what their statement means? Should I be looking for a new insurer? I'm not liking the looks of the "less favorable terms" piece.

Do any of you need to sign such an affidavit for Collectibles Insurance Agency or any other insurer or is it just us lucky Collectibles Insurance Agency New Jersey customers?