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Can socio-economic factors be used to underwrite auto policies under the new “managed competition” system?

April 26, 2017Auto factors policies socio-economic system underwrite Used

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Can socio-economic factors be used to underwrite auto policies under the new “managed competition” system?

1 Answer

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A. The regulation bans the use in rating of sex, marital status, race, creed, national origin, religion, occupation, income, education, homeownership, and age as against public policy. The one exception: drivers age 65 and over will continue to receive a discount. The Insurance Commissioner has set similar bans in the use of underwriting based on age, sex, race, occupation, marital status or principal place of garaging; nor should companies use education or home ownership in underwriting.