by Guest » Fri Mar 24, 2006 09:09 am
Hi !
Many of us must have noticed the recent reports of some minor clashes been depicted in some eminent websites highlighting the differences between the Berkshire Hathaway (NYSE: BRKa)(NYSE: BRKb) unit GEICO against the Consumer Federation of America (CFA) and the not-for-profit insurance agency New Jersey Citizens United Reciprocal Exchange (NJ CURE).
The CFA and the NJ CURE have recently questioned the basis of the risk-assessment policies of several insurance companies carrying a lot of goodwill in the world market.
These efforts are mainly directed to establish an appeal to the state governments in order to effect a ban on the insurance practices that relate the consumers' eligibility and premium amounts to their educational background and occupation. Some of the notable companies like GEICO have been blamed of charging different rates to people from different professional streams and this has been backed with records of the different quotes offered by the company. This might be very important at throwing some light upon the insurance hazards faced by the minorities, since the minorities mostly occupy the low paid jobs. But then again as we analyze deeper into the problem we have only education and occupation as the factors contributing to GEICO's discriminations. We are yet to track down the other factors, since CFA and NJ CURE are yet to discover them. Once the CFA and NJ CURE have raised interesting questions about the proceedings and intentions of GEICO, they have also submitted the underwriting guidelines of their target to the National Association of Insurance Commissioners (NAIC).
Now, it has become all the more important for us to see if NAIC would consider this argument or dismiss it !
Many of us must have noticed the recent reports of some minor clashes been depicted in some eminent websites highlighting the differences between the Berkshire Hathaway (NYSE: BRKa)(NYSE: BRKb) unit GEICO against the Consumer Federation of America (CFA) and the not-for-profit insurance agency New Jersey Citizens United Reciprocal Exchange (NJ CURE).
The CFA and the NJ CURE have recently questioned the basis of the risk-assessment policies of several insurance companies carrying a lot of goodwill in the world market.
These efforts are mainly directed to establish an appeal to the state governments in order to effect a ban on the insurance practices that relate the consumers' eligibility and premium amounts to their educational background and occupation. Some of the notable companies like GEICO have been blamed of charging different rates to people from different professional streams and this has been backed with records of the different quotes offered by the company. This might be very important at throwing some light upon the insurance hazards faced by the minorities, since the minorities mostly occupy the low paid jobs. But then again as we analyze deeper into the problem we have only education and occupation as the factors contributing to GEICO's discriminations. We are yet to track down the other factors, since CFA and NJ CURE are yet to discover them. Once the CFA and NJ CURE have raised interesting questions about the proceedings and intentions of GEICO, they have also submitted the underwriting guidelines of their target to the National Association of Insurance Commissioners (NAIC).
Now, it has become all the more important for us to see if NAIC would consider this argument or dismiss it !
Posted: Sun Feb 10, 2008 06:02 pm Post Subject:
Lori, Did I read that right? I thought you said you agreed with what the letter said,about college kids being better drivers but at the same time I thought you said your college kid was a way worse driver than yor kid who on had a high school diploma. Did I read that right?
Posted: Sun Feb 10, 2008 06:11 pm Post Subject:
The top five life changing events are:
Even if that were correct, so few people (when compared to the insured masses) suffer from these losses _and_ are involved in accidents that it's really not a driving factor when it comes to risk. Compare these things with; speeding, DUI, age, etc. and you can see that they have little influence in a grand scheme of things.Death of a child
Death of spouse
Death of parent or sibling
Divorce
Separation from spouse due to work or marital difficulties
Again, I, personally don't think we should surcharge for these events...but there is a direct correlation between these five and higher incidents of accidents.
(again, I question how _direct_ an influence these things have on _auto accidents_. I've never seen any study that shows it makes worst drivers for any significant amount of time.
Posted: Sun Feb 10, 2008 06:41 pm Post Subject:
True...not for any significant period of time. But definitely for a period of 1-18 months. Just like driving while talking on a cell phone. No way to enforce that, but there is no doubt that there is an increased risk of an accident while talking on a cell phone.
And here are some other situations (while driving) that increase the likelihood that you will have an accident.
*If you are Roger Clemons and listen to what the average fan is saying about you.
*If you are driving to the bank to cash your winning lottery check from Nigeria.
If you suddenly realized you were supposed to drive to Detroit, and not Cleveland, and you were just passing Toledo.
If you were trying to post this message on your cellphone while driving.
Posted: Mon Feb 11, 2008 12:37 am Post Subject:
I think a lot of times it is just targeted advertising, all types of companies pull this type of advertising. As Lori says, the real discounts start kicking in after the age of 25.
Posted: Mon Feb 11, 2008 11:30 am Post Subject:
Lori, Did I read that right? I thought you said you agreed with what the letter said,about college kids being better drivers but at the same time I thought you said your college kid was a way worse driver than yor kid who on had a high school diploma. Did I read that right?
Sorry if I confused you...When I said I agree I meant with you! :wink: no I do not agree that a college educated person makes them a better driver (especially in my family! :roll: )...I know that on the whole a college degreed person makes more money and therefore can and do handle more of their own claims! So maybe that is where this data came from I don't know...But because it's a 'discount' and not a the rate plan, they can offer a discount on anything they want...including 'moles' on your arm...it's their money to give away...(by way of a discount).....
I think all auto carriers should offer a discount for 'tea-toters' too, because there is then zero risk of any alchol related accidents...but they don't!
You have to remember that discounts and rate classes are two totally different animals.
Posted: Mon Feb 11, 2008 11:54 am Post Subject:
good morning Lori, ok, rate class, new term, can you explain please? I know the definition of a discount but never heard the term rate class before.
Posted: Mon Feb 11, 2008 12:42 pm Post Subject:
Well a 'rate class' some might say 'tier' is like well, a 16 year old is in an awful rate class, meaning because they are 16 and male or female, that is the slot or rate class they are in..when they marry (boys mostly) they get to move into the 'married' rate class, when they reach 25, (in my area anyway) and if married, huge move to a better rate class...I'm not explaining this well I know...I guess if you look at it like a slot or tower, where you look at the age, sex, driving record etc...there is a 'rate class' the agent or underwriting puts them in...that rate class determines their premium...i'm sure an agent could explain it better...don't see the 'new term' in here maybe I missed it...a new term would be the new policy period, would need to see the context it is written in...have i totally confused you now? :roll:
Posted: Mon Feb 11, 2008 06:56 pm Post Subject:
Thats very funny Ohio! Glad to see the humor here.
Posted: Thu Feb 14, 2008 03:07 am Post Subject:
Ohio has a great sense of humor, really glad to have you here. :twisted: :twisted:
Posted: Thu Feb 14, 2008 03:20 pm Post Subject:
Yes he does, LOL.
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