The draft regulation makes years of driving experience, driving record and a vehicle's model and safety features as the primary rating and underwriting factors in private passenger auto insurance.
The draft regulation bans insurers from using gender, marital status, education, occupation, national origin, religion, homeownership and other socioeconomic factors, some of which Burnes says are prohibited by statute and others which she deemed violate public policy, for either rating or underwriting.
It also forbids insurers from using information from credit reports or scores for rating for at least a year, during which time she said she would study the overall use of credit scores by insurers. It does not prohibit the use of credt scoring for underwriting.
This does mean that subsidization will still be alive and well. Let's hope that there is less of it.
