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INSURANCE BROKERS ASS'N OF N.J., INC. v. SHEERAN

162 N.J. Super. 34 (1978)

392 A.2d 203

INSURANCE BROKERS ASSOCIATION OF NEW JERSEY, INC., AND LICENSED BROKERS JOHN SAVARESE AND JACOB GRIFFIN, JR., APPELLANTS, v. JAMES J. SHEERAN, COMMISSIONER OF INSURANCE, STATE OF NEW JERSEY, RESPONDENT.

Superior Court of New Jersey, Appellate Division.

Decided August 15, 1978.

Attorney(s) appearing for the Case

Mr. Joel Sondak argued the cause for appellants (Messrs. Walder, Steiner & Sondak, attorneys; Mr. John A. Brogan, Mr. Edward Krowen and Mr. Sondak on the briefs).

Mr. Wesley S. Caldwell, III, Deputy Attorney General, argued the cause for respondent (Mr. John J. Degnan, Attorney General of New Jersey, attorney; Mr. Stephen Skillman, Assistant Attorney General, of counsel; Ms. Maureen McGrath, Deputy Attorney General and Mr. Caldwell on the brief).

Before Judges LORA, SEIDMAN and MILMED.

The opinion of the court was delivered by MILMED, J.A.D.

This appeal brings up for review the validity of certain rules promulgated by the State Commissioner of Insurance (Commissioner) concerning service and placement fees charged by insurance brokers, viz., N.J.A.C. 11:1-7.1 through 11:1-7.6. We stayed the effectiveness of the rules pending the appeal.

The thrust of appellants' challenge is that (1) the rules were adopted in violation of "mandatory...

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