New Jersey to Take Action against Eight Auto Insurers.

Byline: Randy Diamond

Dec. 20--The state will take legal action today against eight auto insurance companies, accusing them of refusing to sell "bare-bones" policies designed to turn thousands of uninsured motorists into legal drivers.

The action results from a one-week undercover probe in mid-October in which investigators posing as customers called the companies and found that the insurers used a number of illegal tactics to block the sale of the discount policies, state officials said.

Some sales agents claimed they didn't know the cheap policies existed. Others said they didn't sell them, including one who said, "It's too big a problem." State officials told The Record on Thursday that the insurers -- and 11 agents who worked for them -- will be given show-cause orders demanding that they explain and defend their practices. If their …