Industry Updates
NALC Comment Letter, Proposed New Rules: N. J. A. C. 12:11 ABC Test Independent Contractor
August 6, 2025
Submitted electronically to David Fish, Executive Director, Legal and Regulatory Services, New Jersey Department of Labor and Workforce Development
Mr. Fish:
This letter is submitted on behalf of the National Alliance of Life Companies (NALC), to address the New Jersey Department of Labor and Workforce Development’s proposed new NJAC 12:11 (the “proposed rule”, or “proposal”), which would apply the statutory “ABC test” to the question of independent contractor status in New Jersey. We appreciate the opportunity to provide our comments.
The proposed ABC test offered by the Department is fatally flawed with respect to the life insurance industry. The proposal does not address, distinguish, or incorporate New Jersey‘s long history of statutory and regulatory exemptions for independent insurance agents from the scope of the ABC test. This radical change would, without cause, have a devastating impact on the millions of New Jersey residents who rely upon independent insurance agents for financial protection for themselves and their families. It would also cause significant economic harm and loss of income for the thousands of New Jersey residents who currently work as independent insurance agents.