View this article online: https://www.insurancejournal.com/magazines/mag-declarations/2013/02/11/280155.htm
Loss Prediction
“State insurance regulators should require auto insurers to explain why they believe factors such as education and income are better predictors of losses than are at-fault accidents.”
—J. Robert Hunter, Consumer Federation of America. The CFA recently issued a report alleging that most major auto insurers routinely use “non-driving-related” factors such as income level and education in their pricing decisions. The consumer group alleged that this practice can often result in safe drivers with good driving records paying higher premiums.
Rain nor Shine
“It’s a little known fact that I also spent 11 years in uniform. Sure, it was a Postal uniform.”
—John Ratzenberger, the factoid-dispensing postman from the “Cheers” sitcom, said to group of insurance professionals during an event at the Cosmopolitan hotel in Las Vegas hosted by the “Swett Warriors” organization to raise funds and awareness for injured veterans. One hundred wounded veterans and more than 700 industry professionals were at the event in late January.
Lacking Support
“There were a number of variables factoring into the decision to deny this request and the actuarial support was lacking, prompting concerns regarding the magnitude of the profit provision.”
—Louisiana Insurance Commissioner Jim Donelon comments on his decision not to approve a request by State Farm Fire and Casualty Co. (State Farm) to raise homeowners rates in the state by 16.6 percent. State Farm said the rate hike is justified.
Undocumented, Licensed Drivers
“The president can say about his home state of Illinois … we not only passed the Dream Act last year, we passed driver’s licenses for those who are undocumented.”
—Illinois Gov. Pat Quinn, who has signed into law a measure allowing the state to issue driver’s licenses to illegal immigrants. Illinois is the fourth and most populous U.S. state to do so.