Asm Cohen: End Insurance Discrimination

by: Juan Melli

Wed Feb 28, 2007 at 04:32:44 PM EST

I saved a bunch of money on my car insurance, but some people may be getting a raw deal according to NJ Citizen Action and Assemblyman Neil Cohen:

"As Citizen Action's report shows, the insurance industry practice of using educational level and occupation as a proxy for income level and race is discriminatory and unconstitutional.
"The Civil Rights Act of 1964 prohibits using race as a factor in providing insurance. New Jersey insurance statutes similarly states: `No underwriting rule shall be based on the lawful occupation or profession of an insured individual.'
"This practice needs to be halted before more auto insurers begin using it or are forced to use it to stay competitive. I urge my colleagues in both houses to take swift action on legislation Senator Nia Gill and I have introduced to that effect."

Juan Melli :: Asm Cohen: End Insurance Discrimination

Tags: GEICO, Neil Cohen, insurance discrimination, Nia Gill, (All Tags)

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Asm Cohen: End Insurance Discrimination | 4 comments

I don't get this... (0.00 / 0)

If the insurance companies can produce actuarial data that bears out justification for their risk classification, shouldn't they be able to set rates accordingly. I don't find it particluarly fair that they assume single males under 25 are most likely to have accidents, but if they can statically prove it, I can't argue with them, can I?
Why should it be any different with educational level, credit rating or any other criterion that they can justify statistically?

"Where ever you go, there you are." - Buckaroo Bonzai

by: William Weber (WjcW) @ Wed Feb 28, 2007 at 22:58:11 PM UTC

by: you @ soon

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PS. (0.00 / 0)

Didn't see that the thrust of his argument was race related. (I thought he was harping on the credit score rating). I can't advocate setting rates based on race, no matter what the stats bear out. (but I think the other things are fair game)

"Where ever you go, there you are." - Buckaroo Bonzai

by: William Weber (WjcW) @ Wed Feb 28, 2007 at 23:03:22 PM UTC

[ Parent ]

ins cos use stats arbitrarily (0.00 / 0)

The fact is, insurance companies use statistics on accident rates and costs arbitrarily (when it is convenient to them and/or socially acceptable). Otherwise, women of all age groups except elderly women, would have lower rates. Women (married, single, old, young) all have less accidents and less costly accidents until they are elderly. Then, they have a greater chance of death or severe injury because they are more frail. The next largest group that have a great chance of death or severe injury or young males (due to the reckless, high speed factor).

by: deme38 @ Thu Mar 01, 2007 at 19:54:12 PM UTC

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Don't they... (0.00 / 0)

In fact, have lower rates? I'm pretty sure the single, male, under 25, person has the higest rates. Which essentially discriminates by sex, age, marriage, but I have no probelm with that, if the stats bear it out. But I can see your point, they have to apply those stats uniformly, they have to apply all those factors uniformly across all candidates.

"Where ever you go, there you are." - Buckaroo Bonzai

by: William Weber (WjcW) @ Thu Mar 01, 2007 at 20:13:22 PM UTC

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