Princeton, N.J. (PRWEB) April 2, 2009
CURE Auto Insurance today announced its support of the National Conference of Insurance Legislator's (NCOIL) investigation of the auto insurance industry's use of education and occupation in underwriting of policies. Through the investigation, NCOIL will review evidence that points to education and occupation as being proxies that lead to discrimination in current insurance rating systems and ultimately places poor and minority populations at a greater risk for higher premiums.
"We support NCOIL's review of this issue," said Eric Poe, Esq., CPA, COO of CURE Auto Insurance. "There is no correlation between a person's level of education and / or their occupation and how well they drive. The use of education and occupation as underwriting methods discriminates against the working class population of responsible drivers who simply could not afford college, or are fortunate enough to obtain a high paying occupation, leaving them with much higher rates. You shouldn't have to be an attorney, or a Wall St. CEO in order to afford car insurance - if you drive well that is all that should really matter."
Poe on behalf of CURE Auto Insurance cited its support of the review at the March 5, 2009, spring meeting of NCOIL's Property-Casualty Insurance Committee, which stirred a heated debate between supporters of using education and occupation data and those that oppose it. The debate prompted NCOIL to further investigate the issue.
"This is an issue of social fairness, with credit scores also used in conjunction with these income proxies it is obvious who the industry competitors are trying to reach - the upper class and wealthy." Poe said. Poe pointed out that this method of rating and underwriting for auto insurance, which is mandated in 48 out of 50 states becomes even more relevant during the current hard economic times.
NCOIL's Property-Casualty Insurance Committee will reconvene during the July 9 - 12, 2009, summer meeting in Philadelphia, Pa. at which time the issue will be revaluated.
For more information please visit http://www.drivewell.com or call 800-535-CURE.
Headquartered in Princeton, N.J., Citizens United Reciprocal Exchange, (CURE) is a not-for-profit reciprocal exchange. Founded in 1990 by New Jersey Insurance Commissioner James J. Sheeran and award-winning insurance expert, Dr. Lena Chang as answer to the insurance crisis in New Jersey, CURE continues to lead the way as the not-for-profit solution for responsible drivers and the "cure" for the continuously evolving auto insurance problems. CURE is currently available in New Jersey and Pennsylvania. More information can be found at http://www.drivewell.com or by calling 800-535-CURE.
NCOIL is an organization of state legislators whose main area of public policy interest is insurance legislation and regulation. Most legislators active in NCOIL either chair or are members of the committees responsible for insurance legislation in their respective state houses across the country. More information is available at http://www.ncoil.org.
For further details, please contact the NCOIL National Office at 518-687-0178.