CURE Auto Insurance executive who took on his own industry celebrates a new proposed law prohibiting the use of income proxies that discriminate against less wealthy drivers

TRENTON, N.J., May 10, 2018 /PRNewswire/ -- On April 12, 2018, Congresswoman Bonnie Watson Coleman (D-NJ) introduced H.R. 5502, the Prohibit Auto Insurance Discrimination Act ("PAID"). PAID seeks to prohibit private passenger automobile insurers from basing car insurance rates and eligibility on certain income proxy criteria.   This legislation would curb the insurance industry's widespread use of these discriminatory factors, such as education, occupation, employment status, home ownership status, and credit score, the current use of which results in major companies charging higher car insurance rates to drivers who do not have four-year college degrees or high-paying jobs, regardless of driving record.

"This discriminatory practice of using income proxies for rating was publicly criticized by our organization for the last decade, and I am excited that Rep. Watson-Coleman had the courage to introduce this bill to protect consumers," said Eric S. Poe, Esq., CPA, and COO of CURE Auto Insurance.

Poe, an avid consumer advocate who provided draft language for the bill that brought the discriminatory practice to Congresswoman Watson Coleman's attention, was among the first insurance executives to inform the public of these socio-economic rating practices as far back as 2006, when he testified in New Jersey against GEICO's use of education and occupation.

Since that time, Poe has worked tirelessly to enact state and federal legislation that would prohibit these practices, testifying against the use of income proxies in Florida, New Hampshire, New Jersey, Pennsylvania and before the House of Representatives Oversight and Investigations Committee in 2008.

Poe explains, "Most consumers are totally unaware of this trend, which is currently a legal way for auto insurers to attract wealthier consumers, a group that tends to be more profitable to the insurers.  But just because richer people produce higher profits for insurers than poorer people does not make this is a fair practice by auto insurers, especially when the laws of 49 out of 50 states require insurance."

To combat this disturbing and discriminatory use of income proxies in auto insurance, the recently introduced bill would prohibit auto insurers from considering several income proxies when determining a consumer's eligibility for auto insurance or in calculating a consumer's rate. The income proxies that are prohibited by PAID include a consumer's level of education, occupation, employment status, home ownership status, and credit score.

SOURCE CURE Auto Insurance