Industry representatives are saying insurers need “tools that will assist them in providing lower and more stable rates for New Jersey drivers” and “Consumers benefit when insurers seek to find more accurate, objective and actuarially justified underwriting and rating criteria, such as education and occupation.” A representative from the not-for-profit direct writer New Jersey Citizens United Reciprocal Exchange (NJCURE) commented on the use of this criteria, “This is different from other rating factors used because it has a socio-economic influence to it.”
I think the use of job and education status is unnecessary and leads to discrimination. Many people did not graduate from college and have well paying secure jobs. Not to mention that a lack of a college degree is no indication of a persons irresponsibility or inability to pay a premium.
What do you think about this debate?
Should insurers be able to use job and education status to underwrite personal insurance?
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