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NJ Assembly Speaker (DUMmie) speaks out against Geico
Philadelphia Business Journal ^ | 03/09/06 | Staff

Posted on 03/09/2006 11:06:49 AM PST by kevinm13

Legislation was introduced in New Jersey Tuesday that would bar insurers from using drivers' education or profession in setting automobile-insurance-policy rates.

Assembly Deputy Speaker Neil M. Cohen, D-Union, introduced the bill in response to published reports that Geico of Washington, D.C., used such information in setting prices.

"I found out about this practice the same way everyone in New Jersey did -- by reading the newspaper," Cohen, chairman of the financial institutions and insurance committee, said. "And just like everyone else, I was outraged."

Cohen's bill, A-2819, would prohibit insurers from assigning less-favorable rates to drivers based on their education level and/or occupation. It would also prevent insurers from requiring any educational or occupational information as part of an application for coverage or continued coverage.


TOPICS: Business/Economy; Government; Politics/Elections; US: New Jersey; US: New York; US: Pennsylvania
KEYWORDS: business; freetrade; geico; insurance
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First it was Maryland legislators trying to tell WalMart how to cover its employees for healthcare in Maryland, then litigation that forced WalMart to stock products in its pharmacies that it did not need or choose to sell, now NJ Dummies want to restrict how GEICO does business. Of course somebody who is employed is a better risk than somebody who is unemployed. And white collar workers who have been educated are usually better than blue collar workers without a lot of education but that is only a bias on my part. Why shouldn't GEICO be able to ask whatever it takes to accept, properly rate or reject a potential customer?

I'm sure there will be plenty more where this came from under the Gov. Corslime regime.

1 posted on 03/09/2006 11:06:52 AM PST by kevinm13
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To: kevinm13
That reminds me. I saw a cop car sitting under a Lexus today, looked to me like the cop wasn't paying attention when the Lexus stopped.

I hope the cops profession isn't taken into consideration when he buys car insurance.
2 posted on 03/09/2006 11:09:31 AM PST by cripplecreek (Never a minigun handy when you need one.)
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To: kevinm13

They are calling drivers ed an "educational level"?

Are they sill allowed to discrimiante based on gender in insurance rates?


3 posted on 03/09/2006 11:09:47 AM PST by L98Fiero (I'm worth a million in prizes.)
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To: kevinm13

Yah know, if the cost of doing business in a State exceeds the revenues, then the business leaves the State. Here we are, with an example of a law that could very well lead Geico to stop offering insurance in NJ.


4 posted on 03/09/2006 11:12:02 AM PST by stylin_geek (Liberalism: comparable to a chicken with its head cut off, but with more spastic motions)
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To: kevinm13
Your opinion smacks of elitism. I work in the military with only a HS education. That means you're a better driver than me? I've been stuck behind enough Oriental Ph. D's who can barely see over the steering wheel to know that isn't true.
5 posted on 03/09/2006 11:14:09 AM PST by Jim Pelosi
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To: kevinm13

Tacklin' dem tuff issues !


6 posted on 03/09/2006 11:14:32 AM PST by TheOracleAtLilac
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To: kevinm13

Does traffic school count as drivers ed?


7 posted on 03/09/2006 11:14:48 AM PST by js1138
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Comment #8 Removed by Moderator

To: L98Fiero
"Are they sill allowed to discrimiante based on gender in insurance rates?"

or age?
9 posted on 03/09/2006 11:16:43 AM PST by tfecw (It's for the children)
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To: cripplecreek
Hey, you don't like GEICO's criteria ?

Don't buy their insurance !

10 posted on 03/09/2006 11:17:04 AM PST by TheOracleAtLilac
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To: L98Fiero

Yes and they also use your credit score to determine rates


11 posted on 03/09/2006 11:20:17 AM PST by DaiHuy (Oderint dum metuant)
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To: L98Fiero

Yes and they also use your credit score to determine rates


12 posted on 03/09/2006 11:20:18 AM PST by DaiHuy (Oderint dum metuant)
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To: kevinm13

I thought GIECO was a big Dem supporter? Are they eating their own again?


13 posted on 03/09/2006 11:21:26 AM PST by yobid
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To: kevinm13

Isn't GEICO a Warren Buffett-owned company?


14 posted on 03/09/2006 11:22:28 AM PST by Siena Dreaming
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To: kevinm13
And white collar workers who have been educated are usually better than blue collar workers without a lot of education but that is only a bias on my part.

Better than what? Better at what? Why do you have bias against your part?

15 posted on 03/09/2006 11:23:35 AM PST by MontanaBeth (Never under estimate the enemy.)
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To: Jim Pelosi
And white collar workers who have been educated are usually better than blue collar workers without a lot of education but that is only a bias on my part.

You need to read a bit more carefully before going off.

16 posted on 03/09/2006 11:23:40 AM PST by stylin_geek (Liberalism: comparable to a chicken with its head cut off, but with more spastic motions)
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To: kevinm13


If you do this, the insurance companies are going to assume that we're all rotten drivers and charge us the highest amount.

It's the only smart thing to do. Good to know that we'll all suffer thanks to this guy's institutionalized PC....


17 posted on 03/09/2006 11:23:59 AM PST by Tzimisce (How Would Mohammed Vote? Hillary for President! www.dndorks.com)
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To: yobid

No surprises here. NJ continues along the slow decline into socialism.


18 posted on 03/09/2006 11:25:41 AM PST by ozoneliar ("The tree of liberty must be refreshed from time to time with the blood of patriots & tyrants" -T.J.)
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To: Pheadra

'Nicest people in the world to deal with'

Ha! I had been driving a company car for several years and let my private coverage lapse. Prior to that I had had the same insurance carrier for decades. When I needed private coverage again I called Geico at the insistance of their TV ads. They wanted $4500/yr to insure a '95 Jag.(the car only cost $20K!) My old carrier took me back at less than one tenth that amount. You can have Geico. They are crooks in my book!


19 posted on 03/09/2006 11:27:05 AM PST by bk1000 (A clear conscience is a sure sign of a poor memory)
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To: kevinm13
This is a typical liberal approach to business: shake them down by threatening expensive legislation or litigation. In this case, a business is being threatened because it dares to operate on a rational basis.

Insurance companies are, at their foundation, in the business of risk assessment. This involves the development of methodologies (e.g. - empirical, actuarial, historical, regional) designed to identify the nature and extent of various types of risk by category. The purpose of such categories is to allow the company to properly discriminate between acceptable and unacceptable risks and to price their products and services appropriately.

To Liberals, this is a presumptively illicit trade, involving as it does unequal treatment of people seeking insurance against risk. NJ was one of the last states to move to market rating for auto insurance - Massachusetts is now the LAST state left to set auto rates (no competition). NY has competition - but also incredibly complicated insurance regulations. Guess which states have the highest premiums in the country - inflicted fairly, of course, on all?

20 posted on 03/09/2006 11:37:19 AM PST by andy58-in-nh
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To: yobid
I thought GIECO was a big Dem supporter? Are they eating their own again?

I'd like to find out. I know that Progressive is very leftie.

21 posted on 03/09/2006 11:37:34 AM PST by Gondring (I'll give up my right to die when hell freezes over my dead body!)
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To: kevinm13
I found out about this practice the same way everyone in New Jersey did -- by reading the newspaper
Well, that's certainly a reliable source for a Dem.
22 posted on 03/09/2006 11:37:51 AM PST by oh8eleven (RVN '67-'68)
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To: Siena Dreaming
Isn't GEICO a Warren Buffett-owned company?

Yes, it is a wholly-owned subsidiary of Berkshire Hathaway (WB's holding company).

23 posted on 03/09/2006 11:40:10 AM PST by andy58-in-nh
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To: Tzimisce
Remember that NJ still has the highest auto insurance rates (and property taxes but that is another story) even after GEICO re-entered the market 3-4 years ago after an almost 20 year absence. Reforms initiated under Christie Todd Whitman took hold and improved conditions but only benefited drivers with marginally lower rates.

DUmmie thinking is to put everybody on the same scale and force us all into bankruptcy with high regressive taxes and restrictions to business like this.
24 posted on 03/09/2006 11:40:18 AM PST by kevinm13 (The Main Stream Media is dead! Fox News Channel Rocks!)
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To: Gondring
GEICO used to stand for Government Employees Insurance Company. Open to the general public now though. Not sure about their political tendencies, though.
25 posted on 03/09/2006 11:40:32 AM PST by CT-Freeper (Said the perpetually dejected Mets fan.)
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To: Jim Pelosi
Your opinion smacks of elitism. I work in the military with only a HS education. That means you're a better driver than me? I've been stuck behind enough Oriental Ph. D's who can barely see over the steering wheel to know that isn't true.

Insurance companies track huge amounts of data on people involved in crashes, and they learn that people who work in some jobs tend to have more accidents. They learn that on average people with a certain education level tend to have more accidents that people with a different education level.

They balance a lot of different factors based on what they know about someone and come up with rates for that person that they feel best represent the risk they are taking by insuring that person.

Education and occupation are far from the only factors they take into consideration. So picking out one person with a Ph. D that isn't a good driver and comparing them to yourself isn't a valid comparison to what they are doing.

However, if the insurance companies have real solid data that says that certain groups pose more risk than others, why shouldn't they be allowed to use that data? Why should other groups that pose less risk be forced to pay higher rates to help cover the costs of insuring the more risky people?

26 posted on 03/09/2006 11:43:54 AM PST by untrained skeptic
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To: kevinm13

I imagine as soon as they get this passed, their next target will be Life Insurance companies.


27 posted on 03/09/2006 11:44:22 AM PST by anoldafvet
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To: js1138

"Does traffic school count as drivers ed?"

I have Geico. They do not accept drivers ed. You have to get A's in school. If you are homeschooled, you have to show them a standardized test that shows that the student is in the top 80%. I wish they WOULD accept drivers ed. I think a student who takes drivers ed has more of a chance of being a safe driver than someone who can make good grades.


28 posted on 03/09/2006 11:45:23 AM PST by imskylark
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To: kevinm13

I imagine insurance actuarians have nailed down these figures well, otherwise the insurance companies wouldn't bother. Since 9/11 haven't Americans suffered enough?


29 posted on 03/09/2006 11:59:23 AM PST by Republicus2001
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To: imskylark

You can't fool actuaries.


30 posted on 03/09/2006 11:59:49 AM PST by js1138
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To: kevinm13

Ironic that this come from the party that always touts education as the cure all.


31 posted on 03/09/2006 12:07:27 PM PST by Balding_Eagle (Free Republic, the newspaper I can talk back to!)
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To: js1138
You can't fool actuaries.

True, but explain to me why life insurance companies have marketing campaigns targeting the Homosexual crowd.

32 posted on 03/09/2006 12:09:06 PM PST by Balding_Eagle (Free Republic, the newspaper I can talk back to!)
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To: untrained skeptic
Insurance companies track huge amounts of data on people involved in crashes, and they learn that people who work in some jobs tend to have more accidents. They learn that on average people with a certain education level tend to have more accidents that people with a different education level.

True. I'm insured with an auto carrier that used to admit that it wanted "white collar" business. (Probably not PC to do that anymore.) It doesn't advertise and it usually accepts new insureds by referral from current insureds.

If you call them, the first question is "Who referred you?"

I don't get any satisfaction from the snob appeal but they've got excellent rates and last time I checked, Consumer Reports was rating them in the top three.

33 posted on 03/09/2006 12:19:58 PM PST by DeFault User
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To: Balding_Eagle

it's all in the odds


34 posted on 03/09/2006 12:51:48 PM PST by Republicus2001
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To: Balding_Eagle

it's all in the odds


35 posted on 03/09/2006 12:55:57 PM PST by Republicus2001
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To: Balding_Eagle
True, but explain to me why life insurance companies have marketing campaigns targeting the Homosexual crowd.

Probably, it is very expensive. I read that 50% get AIDS.

36 posted on 03/09/2006 1:08:51 PM PST by ClaireSolt (.)
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To: Republicus2001

By the way, I think it is interesting how Peter Lewis of Progressive made his fortune. Like a predator, he set up Progressive for the pool of rejects and then charged them a fortune. In 1994, Progressive charged me $900/mo when State Farm dropped me. I got that changed as quickly as I could. Tell me again how dems look out for the little guy.


37 posted on 03/09/2006 1:13:07 PM PST by ClaireSolt (.)
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To: Pheadra
Nicest people in the world to deal with.

I won't argue that, but their commercials make my head explode!

38 posted on 03/09/2006 1:18:44 PM PST by Fresh Wind (Democrats are guilty of whatever they scream the loudest about.)
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To: kevinm13

FWIW, I took 15 minutes and went to GEICO.com for a rate check. They quoted me a rate at least 15% HIGHER than what I was paying.

According to a chat with an agent, it was do to my credit check, which still had some junk in it from the ex.

My only loan at this time is my mortgage which accounts for about 20% of my takehome pay.


39 posted on 03/09/2006 1:21:24 PM PST by TC Rider (The United States Constitution 1791. All Rights Reserved.)
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To: kevinm13

Sounds like geckophopbia to me.


40 posted on 03/09/2006 1:24:38 PM PST by verity (The MSM is comprised of useless eaters)
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To: bk1000

Why would you want to insure a doorstop?


41 posted on 03/09/2006 1:29:22 PM PST by Old Professer (The critic writes with rapier pen, dips it twice, and writes again.)
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To: Jim Pelosi

DWA - Driving While Asian. It's serious business. Can't tell you the number of times I've been hit, cut off, rear ended, seen stoplights run, etc. by asian drivers.

I don't know what it is.


42 posted on 03/09/2006 1:29:23 PM PST by RinaseaofDs
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To: untrained skeptic

I read that preachers pay out the nose, seems the insurance companies frown on co-pilots.


43 posted on 03/09/2006 1:31:08 PM PST by Old Professer (The critic writes with rapier pen, dips it twice, and writes again.)
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To: Old Professer

'Why would you want to insure a doorstop?'

LOL! Contrary to the stereotype, mine has been a good car. Bought it with 53000 miles on it and have 90K now. No problems to speak of.


44 posted on 03/09/2006 1:41:35 PM PST by bk1000 (A clear conscience is a sure sign of a poor memory)
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To: untrained skeptic
I understand they're modus operandi, but tell me again why I should pay more just because I didn't go to college? Being in the military I can assure you I acted more responsibly, smoked less dope and wasted less money than the large majority of college students. My driving record is spotless and the military discount offered by Geico is pathetic. Of course the logical answer is to take my business elsewhere, but these things have a way of trickling down to every other company. It's not bad enough that I have to pay more because I was born with a penis, now I'm being penalized for reading Hemingway on my own instead of in a class room.
45 posted on 03/09/2006 1:55:25 PM PST by Jim Pelosi
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To: stylin_geek
They already fled the state in the late 60's. Now they have a stupid looking lizard with a British accent promoting their agenda.

They suck and anybody that get's caught up in their scam is stupid, stupid, stupid. Stuck on Stupid!

This from only a high school graduate!

46 posted on 03/09/2006 1:55:28 PM PST by rocksblues (John McCain says adopt a terrorist today!)
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To: Jim Pelosi
I work in the military with only a HS education. That means you're a better driver than me?

If you're in the military, you're more likely to be a better risk than someone without that experience. Look at how well USAA has done (insures only veterans).

If the bias I use has data behind it, it is good business. If it weren't, it would be illegal discrimination, and a profit opportunity for my competitor.
47 posted on 03/09/2006 2:03:02 PM PST by kenavi ("Remember, your fathers sacrificed themselves without need of a messianic complex." Ariel Sharon)
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To: kevinm13
"I found out about this practice the same way everyone in New Jersey did -- by reading the newspaper," Cohen, chairman of the financial institutions and insurance committee, said.

It is his opportunity to show that he read more than the funny papers.
48 posted on 03/09/2006 2:04:29 PM PST by kenavi ("Remember, your fathers sacrificed themselves without need of a messianic complex." Ariel Sharon)
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To: kenavi

Yes, USAA gets just about all my business, from car insurance to checking, savings, investments and hopefully soon a mortgage.


49 posted on 03/09/2006 2:15:50 PM PST by Jim Pelosi
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To: Jim Pelosi
Yes, USAA gets just about all my business, from car insurance to checking, savings, investments and hopefully soon a mortgage.

I bet a lot of banks would like to get that mortgage loan oppty from you, but most banks won't appreciate you as well as an affiliation group like USAA. Good fortune to you, it is not a bad time to buy.
50 posted on 03/09/2006 2:23:18 PM PST by kenavi ("Remember, your fathers sacrificed themselves without need of a messianic complex." Ariel Sharon)
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