GEICO was accused Monday of tying education and occupation to auto insurance rates, a policy that may discriminate against minorities and lower-income workers.
In a March 14 letter to the National Association of Insurance Commissioners, the Consumer Federation of America (CFA) said “Geico’s methodology is reprehensible because not everyone has the opportunity or can afford to pursue a four-year college degree.”
Geico, responding in a March 17 letter to the NAIC, said the CFA’s opinions are “an offensive attempt to link fundamentally fair and actuarially sound industry practices with invidious discrimination.”
Read More: CFA Press Release.
GEICO is probably not tying the metrics because they’re big meanie-pants, but rather, as there’s a statistical relationship… But what do you think?
(Tip o’ the hat to Thomas!)