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We know you've got a lot of stuff you want answered. Keep in mind there's no
such thing as a stupid question. We don't expect you to be experts in car insurance.
That's our job. Every question needs an answer, so ask away. And if you have a question
that isn't represented on this list, no problem. Just give us a call.
- What is CURE?
CURE stands for Citizens United Reciprocal Exchange, a not-for-profit reciprocal exchange.
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- What is a Reciprocal Exchange?
A reciprocal exchange is a group of individuals, corporations or entities who, as members, agree to exchange contracts of insurance (policies) and share their insurance risks among themselves within their select group. Each member (policyholder) of a reciprocal exchange individually appoints and authorizes a common attorney-in-fact to manage the affairs of the exchange.
Reciprocal exchanges have long been effective alternatives to traditional insurance companies and are not a novel concept. In fact, two of the six largest nationwide auto insurers are reciprocal exchanges.
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- Who Manages CURE?
The attorney-in-fact, Reciprocal Management Corporation ("RMC"), is individually authorized by each member of CURE to manage the affairs of the Exchange. RMC was founded by highly respected former New Jersey Insurance Commissioner James J. Sheeran, who served eight years during Governor Brendan Byrne's administration from 1974 to 1982, and Dr. Lena Chang, an award-winning insurance expert. Their combined experience in forming, regulating and managing insurance exchanges exceeds four decades.
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- How is CURE Different?
CURE is different from most insurance companies in many ways. First, CURE functions in a not-for-profit manner, so there is an obligation to keep any unused premiums - or "profits" - in the Exchange and to use them solely for the benefit of its members – not as profits to stockholders.
CURE's premium covers a full 12 months of protection. Most other insurers quote prices for policies lasting just six months, so rates can be increased and penalty charges quickly added.
CURE cares more about how you drive, so we refuse to adopt discriminatory rating factors that most other insurers use. These factors can increase your rates as much as 50% and have nothing to do with your driving record - these rating factors include:
- Credit Score – the lower your credit score, the more other insurance providers will charge. CURE does not use your credit score as a factor in determining rates.
- Education – many of the leading insurance companies determine your rate based on your education level. If you do not have a 4-year college degree, your rates will increase. CURE does not use education as a factor in determining rates.
- Occupation – many national companies determine your rates based on your job. And some companies – such as GEICO – provide their least favorable rates to those they categorize as "blue and grey collar workers." CURE does not use occupation as a factor in determining rates.
- Home Ownership – many insurance providers determine your rates on whether or not you own a home and will charge higher rates to those who do not. CURE does not use home ownership as a factor in determining rates.
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- Will I Need to Use an Insurance Agent?
NO. CURE is a "direct writer" of policies, thereby eliminating the high costs associated with paying commissions to agents. Not only does the elimination of the "middleman" reduce costs to our members, it also increases the efficiency of CURE's operations. When policyholders have questions regarding their coverages or when an accident occurs, CURE's representatives respond directly, promptly and courteously.
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- How Do I Report a Claim?
Simply call 800.535.CURE (2873) and speak with a friendly claims representative who will explain your coverages and guide you step-by-step through the claims process. Your claim will be handled expeditiously and settled in a fair manner. Our experienced staff also prides itself on protecting the Exchange from paying fraudulent and frivolous claims.
We understand that involvement in an accident can be a very traumatic experience. Therefore, each policyholder — as a member of the Exchange — is treated with the utmost courtesy and personal attention.
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- What is the Surplus Contribution?
Every insurance company doing business in New Jersey is required to maintain a certain level of surplus funds to operate. As the premium dollars and the number of insureds grow, so too must the level of surplus.
Many traditional insurance companies accumulate surplus by selling shares of stock to outside investors. CURE members (policyholders) generate this surplus themselves. This eliminates the need for outside investors and keeps CURE not-for-profit. CURE policyholders are therefore required to make a surplus contribution equal to an additional 10% of their annual premiums each year (20% is collected in New Jersey during the first year for drivers placed in certain tiers). In future years, this surplus contribution requirement may be reduced. (Click here for an on-line quote request now!)
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- Can I Come to Your Location and Fill Out an Application?
Yes. CURE has office hours Monday through Friday from 8:30 a.m. until 4:00 p.m. If you come to our location you can speak
with one of our friendly New Subscriber Service representatives to obtain a quote and receive an application. However, we
suggest that you call 800.535.CURE (2783) prior to visiting our office to ensure that you have all of the necessary paperwork
with you to complete the application.
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