Lizard Face said: \”Geico owns there politicians as well. In fact they just hired the former NJ insurance commisioner last year. This smells bad.\”
NJ Cure, which boasts that it is a non-profit company (it\’s a reciprocal exchange), is advertising on the radio as if it\’s \”exposing\” GEICO\’s practice of careful, innovative underwriting like it\’s a crime. WHO MANAGES NJ CURE?
It was founded by former New Jersey Insurance Commissioner James J. Sheeran. http://www.njcure.com/faq3.shtml
Quite right… a person\’s credit score says nothing about their race, religion, national origin, sexual orientation. Technically speaking it doesn\’t even say much about income level. Credit is responsibility. Being responsible enough to manage finances and debt and to pay on that debt in a timely manner. If a person can\’t be responsible enough for that it often manifests in other aspects of their lives (as proven by multiple studies). Additionally, a person who can\’t pay bills won\’t pay insurance invoices and are more likely to cancel early before a company is able to make profit to offset initial costs of writing a new business policy.
Your not reading me right. I\’m assuming that the so called \”underprivleged\” would yet again pay LESS because of course they it\’s racism and bigotry keeping them down instead of their poor choices that are enabled yet again by laws like this. Message that is sent by this is do what you want and we\’ll hit everyone else with a tax increase to pay for it
GEICO uses education and occupation in every state where allowed and has since their beginnings in 1936. What\’s interesting is that Maryland passed a law to specifically allow this practice. Previously, the Maryland Commissioner of Insurance issued a letter (at the request of GEICO) to all fellow commissioners advising them that as GEICO\’s home state commissioner, they have reviewed their practice and found it to be sound. Understand that it\’s in the best interest of the State of Maryland that GEICO continues to grow. Big business influencing Government officials has been around since the Caveman.
What an ignorant statment Mr Reagan!!!! Not all black people deal drugs, have babies out of wedlock and are not educated. Just because a person doesn\’t have a college degree or is poor doesn\’t necessarily make them bad risks nor does being the opposite make for a good risk. When we replace underwriters who can underwrite \”individuals\” for computer based/slot underwriter those in the minority will always suffer.
First, to address the statement that it is an ASSUMPTION that minorities make up a large portion of the unemployed and uneducated; it is true. Just look at the census data, until you have done that you shouldn\’t make statements about who is making assumptions. Given that, education and occupation are simply proxies for race and income.
Second, to address the comment about the Maryland study…Did you know that when that study was conducted, they didn\’t so much as look at Geico\’s book of business. Now how valid can a study be if the book nor the census data was looked at?
And third, to those who state that using education and occupation is \”actuarially sound\”; well then why is it that when Geico was asked to show the actuarial data supporting the practice, they were unable to provide it.
Bottom line, your job and your degree (or lack thereof) have NO correlation to your driving record. Multi-state, multi-line insurance companies target high income individuals b/c they have more assets that need protecting. Simple as that.
After all that, I leave you with one last thought. To whomever believes that this practice is not discriminatory I ask you to 1)actually look at the US census data 2) research Geico\’s practices; you will find that Geico actually has 4 separate companies and your eligibilty for those companies is dependent on education and occupation alone. They are putting lower income individuals into their sub-standard company which, mind you, has the highest base rates which can be subject to rate increases without affecting their \”preferred company.\”
Using education and occupation is UNETHICAL. That\’s why even though statistical evidence has proven that African-Americans are more prone to certain infections and shorter life spans, race is not allowed as an underwriting factor in life insurance.
What a crock. So GEICO is racist? It hates blacks\’ money? It stubbornly uses ineffective criteria for underwriting in spite of their shareholders\’ wishes? Which is it?
In fact, people with higher education degree who pay their bills on time have demonstrated that they are responsible citizens and therefore better risks than dropouts and deadbeats who are charged more – because they are higher risks. Period. If this runs contrary to your view of humanity, than your view of humanity is skewed.
You say that as if you ASSUME that everyone without a degree is a dropout deadbeat. Even the smartest, most responsible man in the world could\’ve had to stop going to school b/c, I don\’t know, he had to take care of his sick mother, or his wife had a baby. Not everyone is uneducated because they are a deadbeat.
Secondly, I\’m not saying that Geico is racist. I\’m saying that using education and occupation as factors to determine car insurance rates is unethical. Geico, as an industry leader, is forcing other companies to adopt this practice. That is why the focus is on Geico. I don\’t agree with ANY company that uses it.
I didn\’t say that everyone w/o a degree is a dropout or deadbeat. I only acknowledge that there are such people, and apparently you do too. Are not dropouts and deadbeats
Question: should white high school dropouts and credit deadbeats pay as much as a black RN with a Masters Degree in nursing who has a credit rating of 760? Shoudl everyone pay the same premiums for life insurance regardless of whether or not they are smokers or base jumpers?
Even if the dropout you describe left school to take care of a sick child, there is every reason to charge him higher rates because QUITING ONE\’S JOB HELPS NO ONE. I can hear it now:
\”Honey, I quit my job so that I can stay home and help you take care of Billy.\”
\”But dear, now we have no health insurance or money.\”
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Lizard Face said: \”Geico owns there politicians as well. In fact they just hired the former NJ insurance commisioner last year. This smells bad.\”
NJ Cure, which boasts that it is a non-profit company (it\’s a reciprocal exchange), is advertising on the radio as if it\’s \”exposing\” GEICO\’s practice of careful, innovative underwriting like it\’s a crime. WHO MANAGES NJ CURE?
It was founded by former New Jersey Insurance Commissioner James J. Sheeran.
http://www.njcure.com/faq3.shtml
Quite right… a person\’s credit score says nothing about their race, religion, national origin, sexual orientation. Technically speaking it doesn\’t even say much about income level. Credit is responsibility. Being responsible enough to manage finances and debt and to pay on that debt in a timely manner. If a person can\’t be responsible enough for that it often manifests in other aspects of their lives (as proven by multiple studies). Additionally, a person who can\’t pay bills won\’t pay insurance invoices and are more likely to cancel early before a company is able to make profit to offset initial costs of writing a new business policy.
Bob,
Your not reading me right. I\’m assuming that the so called \”underprivleged\” would yet again pay LESS because of course they it\’s racism and bigotry keeping them down instead of their poor choices that are enabled yet again by laws like this. Message that is sent by this is do what you want and we\’ll hit everyone else with a tax increase to pay for it
GEICO uses education and occupation in every state where allowed and has since their beginnings in 1936. What\’s interesting is that Maryland passed a law to specifically allow this practice. Previously, the Maryland Commissioner of Insurance issued a letter (at the request of GEICO) to all fellow commissioners advising them that as GEICO\’s home state commissioner, they have reviewed their practice and found it to be sound. Understand that it\’s in the best interest of the State of Maryland that GEICO continues to grow. Big business influencing Government officials has been around since the Caveman.
What an ignorant statment Mr Reagan!!!! Not all black people deal drugs, have babies out of wedlock and are not educated. Just because a person doesn\’t have a college degree or is poor doesn\’t necessarily make them bad risks nor does being the opposite make for a good risk. When we replace underwriters who can underwrite \”individuals\” for computer based/slot underwriter those in the minority will always suffer.
I disagree.
First, to address the statement that it is an ASSUMPTION that minorities make up a large portion of the unemployed and uneducated; it is true. Just look at the census data, until you have done that you shouldn\’t make statements about who is making assumptions. Given that, education and occupation are simply proxies for race and income.
Second, to address the comment about the Maryland study…Did you know that when that study was conducted, they didn\’t so much as look at Geico\’s book of business. Now how valid can a study be if the book nor the census data was looked at?
And third, to those who state that using education and occupation is \”actuarially sound\”; well then why is it that when Geico was asked to show the actuarial data supporting the practice, they were unable to provide it.
Bottom line, your job and your degree (or lack thereof) have NO correlation to your driving record. Multi-state, multi-line insurance companies target high income individuals b/c they have more assets that need protecting. Simple as that.
After all that, I leave you with one last thought. To whomever believes that this practice is not discriminatory I ask you to 1)actually look at the US census data 2) research Geico\’s practices; you will find that Geico actually has 4 separate companies and your eligibilty for those companies is dependent on education and occupation alone. They are putting lower income individuals into their sub-standard company which, mind you, has the highest base rates which can be subject to rate increases without affecting their \”preferred company.\”
Using education and occupation is UNETHICAL. That\’s why even though statistical evidence has proven that African-Americans are more prone to certain infections and shorter life spans, race is not allowed as an underwriting factor in life insurance.
What a crock. So GEICO is racist? It hates blacks\’ money? It stubbornly uses ineffective criteria for underwriting in spite of their shareholders\’ wishes? Which is it?
In fact, people with higher education degree who pay their bills on time have demonstrated that they are responsible citizens and therefore better risks than dropouts and deadbeats who are charged more – because they are higher risks. Period. If this runs contrary to your view of humanity, than your view of humanity is skewed.
You say that as if you ASSUME that everyone without a degree is a dropout deadbeat. Even the smartest, most responsible man in the world could\’ve had to stop going to school b/c, I don\’t know, he had to take care of his sick mother, or his wife had a baby. Not everyone is uneducated because they are a deadbeat.
Secondly, I\’m not saying that Geico is racist. I\’m saying that using education and occupation as factors to determine car insurance rates is unethical. Geico, as an industry leader, is forcing other companies to adopt this practice. That is why the focus is on Geico. I don\’t agree with ANY company that uses it.
I didn\’t say that everyone w/o a degree is a dropout or deadbeat. I only acknowledge that there are such people, and apparently you do too. Are not dropouts and deadbeats
Question: should white high school dropouts and credit deadbeats pay as much as a black RN with a Masters Degree in nursing who has a credit rating of 760? Shoudl everyone pay the same premiums for life insurance regardless of whether or not they are smokers or base jumpers?
Even if the dropout you describe left school to take care of a sick child, there is every reason to charge him higher rates because QUITING ONE\’S JOB HELPS NO ONE. I can hear it now:
\”Honey, I quit my job so that I can stay home and help you take care of Billy.\”
\”But dear, now we have no health insurance or money.\”