Posted on 12/23/2019 12:30:28 PM PST by karpov
California regulators are planning stiffer rules on car insurance sold through occupational, educational and other so-called affinity groups, contending some programs discriminate against low-income people.
The state’s insurance department on Monday said it has launched an effort to toughen oversight of group-discount arrangements.
The move follows an investigation that found the most-frequent beneficiaries of these arrangements were Californians in ZIP codes with higher average incomes, higher levels of education and a greater percentage of non-Hispanic white residents, insurance department officials said.
Out of millions of California vehicle owners in affinity groups, the investigation found the most prevalent type was occupational.
State Insurance Commissioner Ricardo Lara’s concern is that some insurers are essentially lumping people together by job category in what the state dubs “fictitious” groups, in contrast to bona fide membership groups such as labor unions, the officials said.
About 60% of the state’s private-passenger automobile insurers offer group-discount programs, covering lawyers, teachers, scientists, engineers, public-safety workers and the military among other types of work, according to a presentation prepared by the state.
While the potential new regulations would apply just in California, the move adds fuel to a national debate among regulators, insurers and consumer advocates about what factors in determining how much consumers pay for car insurance should be prohibited even if they are effective at identifying risks. In 2017, New York’s Department of Financial Services banned use of education and occupation as factors in setting auto-insurance premiums.
Consumer advocates representing low-income people maintain that the use of education and occupation unfairly penalizes people who can least afford insurance even as all vehicle owners are required by law to buy liability coverage.
The investigation found that differences in rates based on job type alone could vary from 1.5% to 25%.
(Excerpt) Read more at wsj.com ...
I don’t get it
Do low income even buy insurance? I’ve been hit probably ten times in my life by low income and none had insurance.
I suspect that there is some serious causal density at work here.
I thought that was Settled Actuarial Science.
I once witnessed a hit and run in northern CA. I followed the guy into a neighborhood, and when he pulled over, I pulled alongside.
He was Hispanic, and driving a beater car. He said he didn’t speak English, but I just pointed back toward that accident and said “Go back”.
He did a U turn, and I followed him back out of curiosity. When we got to the scene, the other car had left.
Karma finally caught up with these 2 jerks. He looked at me and shrugged. I did the same and continued on my way to work.
How ‘bout this: Instead of changing the insurance laws to accommodate poor people, how about changing the law to say: If you’re poor, you can’t drive a car. Or, how about: If you’re poor, you can’t live in CA. Why bend over to help the poor? (sarc)
Different neighborhoods have different rates due to high claims. High claim areas cost the companies more. Can’t blame the insurance companies for that. Those areas are usually high crime areas. See how it works
I have been hit 4 times in my life. Not a one had insurance. Maybe there is a direct correlation between shitty drivers and low income. I.E. Most of 'em are drunks and druggies.
So once again, California punishes the middle class to make up for the unfortunate circumstances of the poor. Lord, how they suck.
“Maybe there is a direct correlation between shitty drivers and low income. “
Low IQ = Low Income.
Low Income People are Higher Risks.
Fact of Life.
But facts are raciss. Must provide handouts to the Gibsmedats.
Apparently “consumer advocates” in California are bat poop crazy, unable to think logically. Bah humbug!
Liberals doing what liberals do best, making certain that almost everyone suffers equally.
“Maybe there is a direct correlation between shitty drivers and low income. “
Low IQ = Low Income”
And this the fundamental reason that the rich get richer, and the poor get poorer.
Yes, and all stores and restaurants discriminate against low income people with no money.
I guess it is discriminatory for Pedro “The Drug Mule” Gomez to be excluded from Chamber of Commerce group insurance discounts!
So the MS-13 gangs should pool their cars to get cheaper insurance?
California thinks so.
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