A consumer group and a nonprofit auto carrier in New Jersey are asking state regulators nationally to bar insurers from using underwriting criteria that, all other factors being equal, bases rates on an applicant's education level and occupation.
GEICO denies these factors are used in isolation to underwrite auto insurance, while the Property Casualty Insurers Association of America defended the use of education and occupation as “valid factors for insurers to use in the marketplace. Some insurers have used these factors with the approval of state regulators for many years.”
The request to stop the practice was made in a letter to the National Association of Insurance Commissioners from NJ CURE, a nonprofit insurer in the state, with its position supported by the Consumer Federation of America. NJ CURE provided a 61-page supporting document.
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