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: Fri Feb 15, 2008 06:57 pm Post Subject:
I understand you now Lori...lol They give discounts what what they beleiev makes a better driver.Just seems strange some of the things they say makes a better driver.My son has learned the hard way (not by listening to me) about insurance rates.If he had only listened to me he would have decent rates by now.I gave this lecture while teaching him to drive.He has never had a DUI though.
Posted: Sat Feb 16, 2008 11:18 am Post Subject:
They give discounts what what they beleiev makes a better driver
Or to build a customer base....some times I don't think it's really that they think they are better drivers, but they can't/wouldn't send a notice saying, 'hey you know what we've figured out that on the whole college educated folks make more money and as they age they aquire more expensive 'stuff' and seem to pay their premiums on time etc...so we'd like to build our college educated customer base!' instead they say like your flyer/letter read...He has never had a DUI though.
Sorry if you took that wrong I didn't mean to insinuate he did, just a generalization... :oops:Posted: Sun Feb 17, 2008 04:13 am Post Subject:
No I did not take that wrong ,I was just mentioning that as maybe the one thing he didn't have...lol was a DUI...Speeding was his main mistake.I think he has learned to do better by paying all the high premiums.
Posted: Wed Feb 20, 2008 02:52 pm Post Subject:
Actually the two have _nothing_ to do with each other and there are _no_ indicators that they do. Give me _1_ example of how these might be related. You won't be able to. What you _might_ say is that this group of people file more claims. That is not being disputed but is not the same thing (see my post above).
Fully agreed. Anyone who says credit rating has any bearing on driving ability or skill, is ignorant on the subject. Finances and mental alertness are not one in the same in any way.
I completely disagree with the way Geico handles the whole profession scenario, but noticed when my job changed and my incoming increase and it came time to renew, my rates dropped.
I'm not usually one for having goverment step in and set guidelines, but in cases like this I think they need to (just as they do with oil companies). Businesses are nickel and diming us to death, making it hard to survive and lead an enjoyful life.
Posted: Fri Feb 22, 2008 05:42 pm Post Subject:
Diem, I agree wih you. There needs to be guidelines.Speaking of gas where I live it went over 3.00 this week.I almost fainted. I don't know how low income are going to afford this gas!It won't be long befor we won't be able to buy the gas to go to work. You make 50 and half goes for gas!
Posted: Sat Feb 23, 2008 04:08 am Post Subject:
That is what I have been using most of my cash outs for hummingbird, I really wanted to do something else with my money, but have to go to work, so I usually end up putting it in the gas tank.
Do you know where the cash out thread is, I have been looking for it, wanted to calculate what I have cashed out and can't find it. If anyone knows could you pm it to me please. thanks
Posted: Sun Feb 24, 2008 04:37 am Post Subject:
When you cash out it goes back to 0. I spend all mine on things the kids want.Like going skating and after school dances.Seems like I never get anything from the earnings...lol
Posted: Mon Feb 25, 2008 12:57 am Post Subject:
Credit is a funny thing. In some cases, if and when you pay off a debt, your credit score reduces.
Of course...being debt-less is a wonderful thing. Our home has another 15 years to go, but we'll have no car payments in about 14 months.
At that time...the monthly contribution into the 529 will increase from $250 to $500. And the HSA will get an uptick as well.
Posted: Wed Feb 27, 2008 08:10 pm Post Subject: insurance
SOOOOO...if i understand this correctly, SOME insurance companies think you are at a 'better risk', if you went to college..compared to, not having a degree?OR.............if you are divorced, or single? How can ANY company make a judgement call, based on that?????
Posted: Thu Feb 28, 2008 10:35 am Post Subject:
The reason might be selling of products. It is not only the risk factor that the company will consider, they will also see to what increases their saleability . Targeting a particular professional class is easy. I think these offers are not based on discrimination but on trials and feasibility.
Add your comment