First ex-felons get reenfranchised, now this?
By way of background, Mr. McCarty's report mentions two other points that legislators should factor into their considerations. The first is Florida's history of slavery, Jim Crow laws and discrimination.
''While Florida leaders have since prohibited the use of factors such as race in determining employment and housing decisions, some vestiges of discrimination remain,'' the report noted.
When bias results, review the input
If a mechanic and a lawyer are the same age, have similar driving records and drive the same kind of car, they should pay roughly the same amount for auto insurance, right? Not necessarily. A report by the Florida Office of Insurance Regulation says that some auto insurers use education and occupation as factors for determining rates, and that the result can be wildly different premiums for people with similar driving experiences. (Read the report at www.floir.com/pdf/occtranscriptv1.pdf.) [P6: Note to Ward Connerly...here's that proxy for race you're so worried about]
Discriminatory practice
The report found that the insurers' methods ''unintentionally harm'' minorities and low-income residents, who end up paying higher rates. Insurance Commissioner Kevin McCarty says that, although the practice is legal under current Florida law, state lawmakers may want to review the situation. ''This practice creates unintended effects that policymakers may find unacceptable,'' he said. We wholeheartedly agree.
The insurance commissioner's report focused on the activities of three auto insurers in Florida, GEICO, Liberty Mutual and AIG. Without legislation that forces restraint, however, other insurers surely will follow suit -- for competitive or other reasons.
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