In the 1970s, New Jersey physicians were faced with the first medical malpractice crisis with two of the largest insurers, St. Paul and Argonaut, making plans to withdraw from the state.
It was at this time that James J. Sheeran, the New Jersey Insurance Commissioner (1974-1982), proposed a solution – a not-for-profit reciprocal exchange. Mr. Sheeran's involvement in licensing the state’s first reciprocal exchange in Healthcare Insurance Exchange (HCIE - Princeton Insurance Company's former parent) and Medical Inter-Insurance Exchange (MIIX) ended the crisis of the 1970s.
Since then former Insurance Commissioner James J. Sheeran teamed up with nationally renowned actuarial science expert, Lena Chang, Ph.D. in mathematics, to help solve the auto insurance crisis in New Jersey by creating CURE Auto Insurance, formerly NJ CURE, and used their vision to help end a workers’ compensation crisis in Massachusetts by creating AIM, formerly MEIE.
By 2000, MIIX became a publicly traded company, and Princeton Insurance Company (purchased by MLMIC in 2000) was no longer owned by a reciprocal exchange. Then in 2002, the medical malpractice industry again found itself in the midst of a crisis. As some of the largest insurers were placed into rehabilitation or experienced financial distress, the doctors who relied on them were left to find more reasonable rates or coverage elsewhere.
With over four decades of working toward and providing solutions for some of the most volatile insurance markets, Mr. Sheeran was again approached by several physicians to bring back integrity and stability to the marketplace.
Together with Dr. Chang, Mr. Sheeran created NJ PURE in the fall of 2002 with the same objective as before - to bring long-term vision and integrity to end another insurance crisis.